A breakup of Time Inc. into pieces is not likely to occur — at least under the current talks between the publisher and suitors, Media Ink has learned.
Time Inc., which has insisted it is pursuing its own internal turnaround strategy, will only entertain overtures from potential buyers interested in purchasing the entire company, sources say.
If the company does get sold, it is expected to be valued in the $3 billion range — which would include around $2 billion for the outstanding stock and assumption of $1 billion in long-term debt.
No mystery buyers have emerged and part-interest buyers are frozen out of the picture.
Meredith Corp., owner of TV stations and magazines such as Martha Stewart Living and Better Homes and Gardens, is primarily interested in monthly magazines aimed at women. But it would have to buy the entire company to get its hands on those select titles.
An investor group that includes Edgar Bronfman Jr., former Maker Studios head Ynon Kreiz and Warner Music Chairman Len Blavatnik kicked off the process last fall with an offer to buy the entire company for at least $18 a share — about $1.8 billion cash, sources said.
That trio and Meredith are the only two parties in the hunt.
American Media Inc., which lost a chance to buy Us Weekly from Wenner Media for $90 million last week, is shut out of any talks.
And Hearst Corp., which is hoping for a secondary market to develop so it can cherry-pick some of the monthly titles, is also on the sidelines.
Time shares ticked up 15 cents on Tuesday, to $19.40.