Time Magazine Financial Show Erosion in Print Business Skip to main content

Time Magazine Financial Show Erosion in Print Business

Image result for Time Magazine Financials Show Erosion in Print Business

With their acquisition of Time magazine, Salesforce.com Inc. CRM -1.63% co-founder Marc Benioff and his wife Lynne will take on a publication racing to find digital revenue to offset a steep erosion in the print business, according to people familiar with the magazine's financials.
Time generated revenue of $173 million in 2017, and operating profit of $33 million, according to the people, who reviewed an offering document used in the transaction process. Revenue is expected to fall nearly 9% to $158 million in 2018, reflecting industrywide pressures, while operating income will be about the same.
The Benioffs are paying around 5.76 times operating profit for Time magazine. Details of valuations in comparable transactions weren't immediately available.
Craig Huber, a media analyst at Huber Research Partners, said "Meredith did very well with the price that they got." He said the Benioffs may find it difficult to operate a single magazine at a time when magazine publishers with greater scale are struggling. Daniel Kurnos, an analyst with Benchmark, said the price the Benioffs are paying is in line with Meredith investors' expectations.
Meredith doesn't disclose financials for individual titles. A spokesman for Meredith said the actual valuation multiple would be closer to 8 times operating income, if additional expenses are factored in that would lower Time's earnings.
In an interview Sunday, Mr. Benioff said he is optimistic about the state of Time's business, including its large audience and growth in video. "We're investing in a company with tremendous impact on the world, one that is also an incredibly strong business. That's what we're looking for when we invest as a family," he said. A spokesman for Mr. and Mrs. Benioff had no further comment.
There are signs Time has begun to stabilize declines in circulation revenue. It is projected to fall from $89 million last year to $83 million this year. Total circulation revenue in 2015 was $104 million, the people familiar with the financials said.
Digital revenue is projected to increase from $28 million last year to $36 million in 2018, though it still represents a small portion of the overall top line. Print revenue has declined from $83 million in 2015 to an expected $38 million this year, the people said.
The proposed acquisition is unrelated to Salesforce.com, where Mr. Benioff serves as chairman and co-chief executive.
The Benioffs said they wouldn't have a role in day-to-day operations or journalistic decisions at Time.
As part of the agreement with the Benioffs, Meredith will continue to provide services such as paper purchasing, printing and consumer marketing services, and will continue to include Time in its corporate advertising deals.
Meredith, publisher of such titles as Better Homes & Gardens, People and the Magnolia Journal, purchased Time Inc. early this year, and looked to unload several of its titles, including Time. Sale discussions for Fortune, Sports Illustrated and Money are ongoing.
Write to Jeffrey A. Trachtenberg at jeffrey.trachtenberg@wsj.com

Comments

Popular posts from this blog

Tueazee - I Know #Flyah Review

Tueazee is an exciting music group based in Augusta, GA, and they have been making music for about a year now.  Releasing music under the J Tizzle Muzic label, the group recently unveiled a new, exciting single titled “I Know.”The song is a great example of Tueazee’s pure and uncompromising combination of new and old-school hip-hop, making for a driven, direct and fast-paced feel that knows no compromises whatsoever. Their flow echoes the work of seminal performers such as Jay Z, Kendrick Lamar, Common or J Cole, bridging the gaps between the unmistakable tone of the 90s golden age and the modern feel.Ultimately, “I Know” stands out as a perfect combination of old-school hip-hop and modern punch, making for a striking, professional and world-class production value.

Piqued Jacks rock n roll #Flyah

Piqued Jacks describe their sound in their own words: “being able to speak without impediment; having sex in the most intense way possible; expressing ourselves 100%”. You have to hear it to experience it for yourself. Piqued Jacks are brave souls. Rising from a small village in Italy, they have methodically made their way from obscurity to Austin, the heart of the indie music scene, performing 2 showcases at SXSW 2013. Their powerful alliance and headstrong vision has resulted in rapid success and the positive flow of their career indicates a confident band gaining serious momentum. Back in 2006, the Piqued Jacks were anything but serious. They causally acquired the band name after someone drops a bass during rehearsal. The damaged jack resembled an erect penis and the boys felt the sexual allusion suited their sound. A few years later, something clicked, a unified connection to the music making process, and from 2010 to 2011 they released two EP’s, conquering Italian airw…

Alla P. Gakuba - A Person is a Product of Time Place and Circumstances

Alla P. Gakuba's short stories are lengthy and full of information whether from historical periods to relate to current times. The twenty short stories detail infamous events such as Napoleon's rise and fall to American women receiving rights to vote. Another of the short stories was about Maslow's Theory describing the five steps of life and achievements. This book is inspiring and gives insight into the mentality of many great people who contributed to society, helped others in times of need and become more self-aware. Alla talked about her time as a engineer being changed from constructing buildings to bridges with no guidance given to her. Even after transferring from Africa to U.S.A. for an engineering job, Alla was puzzled that she earned the job but she strive to achieve her goals. In life, dedication can be the breaking point of a successful venture and a reflection of the steps taken to get there. Alla also theorizes about a time that women felt uncomfortable in a …