Boston, MA 05/23/2014 (wallstreetpr) – The media and entertainment company Time Warner Inc (NYSE:TWX) has been trying to cut weight for some time now. The company is unloading assets while spinning off other businesses into standalone entities in efforts to improve performance.
Adjusting according to the market realities is widespread in the media, telecom and even tech industries as players pursue growth at lower costs. A leaner Time Warner hopes to quickly expand into more markets, reduce costs and expenses, boost product offering and enhance customer experience.
The company recently announced plans to spin off its publishing division so that it can focus more on TV and film. As such, the publishing arm Time Inc will be spun off on June 6, according to a recent regulatory filing. Time Inc owns print and Web-based publishing outlets that include Sports Illustrated, Time, Fortune, People and Entertainment Weekly. The publishing unit operates 45 Web-based sites and 23 magazines in the U.S.
According to Time Warner Inc (NYSE:TWX), the spinoff of the publishing business will not only take away financial burden associated with the struggling publishing industry, but also allow the spun off entity to gain greater focus in growing the business and tackling challenges.
Shareholders of Time Warner will receive a distribution of new shares of the spun off Time Inc. The spun off company will trade on NYSE under the ticker symbol “TIME.”
Time Warner Inc (NYSE:TWX) marks Twenty-First Century Fox Inc (NASDAQ:FOXA), NBC Universal Media and Walt Disney Company (NYSE:DIS) as its main rivals that will have to bear the weight of its success before long. The company revealed significant network investment in 1Q with the aim of enhancing customer satisfaction. With the industry players offering almost the same products, TWX believes that its efforts to improve customer satisfaction will put it a cut above the rest in the TV and film business. The TWX also counts the diversified base of its business to place it ahead of the competition.
Time Warner Inc (NYSE:TWX) earned $0.97 per share in 1Q, ahead of the consensus estimate of $0.88. Revenue came in at $7.55 billion, against the estimated $6.61 billion for the quarter.