People magazine in play in Time Warner deal

Magazines aimed at women sell much better than general-interest titles.

By Jonathan Berr Feb 14, 2013 6:28PM
Amadeus Martin, the store supervisor at Book Inc. on Market street, stocks the latest issue of People magazine in San Francisco on Oct. 16, 2009 ( Russel A. Daniels/AP Photo)People magazine, the focal point of any tie-up between Time Warner (TWX) and Meredith Corp. (MDP), generated $993 million in advertising revenue last year -- almost equal the combined sales of Time, Sports Illustrated and Fortune, according to Publishers Information Bureau data collected by the Association of Magazine Media.

Under a scenario outlined by The New York Times, Time Warner and Meredith would set up a joint venture of soft news magazines targeted to women, such as People and Better Homes and Gardens, a Meredith title that earned more than $775 million in ad revenue last year. Meredith is especially keen on Time Warner titles that appeal to a female audience, such as In Style ($435 million in ad revenue) and Real Simple ($242 million).

Why women? Advertisers want to target their messages to as specific a demographic as possible. That's great news for publishers such as Meredith, which calls itself "the leading media and marketing company serving American women." The losers wind up being general-interest titles targeted wide audiences.

That may explain why Time Warner, whose roots in the magazine business date back to Time magazine's start in 1922, is retaining hard news titles such as Time, Sports Illustrated and Fortune, according to Bloomberg News. Even sports attracts a diverse audience. A 2011 eMarketer survey found that 50% of the women who responded identified themselves as a sports fan.

Many details regarding the deal are still being worked out. According to the Times, Time Warner shareholders would control two-thirds of the new company, which would also pay a special dividend to the parent company of CNN and Warner Bros. It would also borrow several billion dollars, the paper says.

Time Warner has been under pressure from investors to shed its magazine business, its smallest and least profitable, for years.

--Jonathan Berr does not own shares of the listed stocks. Follow him on Twitter @jdberr.


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15Comments
Feb 15, 2013 1:25AM
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Most fast food chains prices have gone up. Why? I've seen nationwide remodelling of their stores and prices gone up as they were doig so. Corporates never loose money , it's always a matter of more profit or less profit. Problem is with greed, the lifestyles of riches are ridiculous. ANyone who is not living large and speaking on behalf of them are either ignorantor misinformed. All upper middle, middle, and lower middle class should stick together.Such a waste of time commenting on these stories since the people of this country will never learn, well atleast not enough of us...

Feb 14, 2013 9:53PM
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I drive across the California central valley all the time, I see immigrant workers out in the fields making who know what, 6-8 bucks an hour? maybe more?  Then we have our own citizens collecting unemployment making more than those people out there working their butts off!  Are we such a rich nation that we can afford to pay people not to work?  I say no!  It is time people get cut off the goodies and get a job.  Maybe then they will appreciate the country we live in.
Feb 14, 2013 9:47PM
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THEY WOULD BE OK--OREGON & WASHINGTON ALREADY HAVE MIN WAGE ABOVE $9.00 AND THEY HAVEN'T CLOSED ANY RESTAURANTS YET.
Feb 14, 2013 8:59PM
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drugs ABUSE??? HOW ABOUT PHYSICAL ABUSE????? WHEN   WAS THE LAST TIME OUR ANIMALS WERE TREATED HUMANLY???    PLEASE GO ON WEB: CHOOSEVEG.COM AND WATCH VIDEO "FROM FARM TO FRIDGE"    AND DESIDE FOR YOURSELF WHAT AND HOW LIVE "NORMAL LIFE". OUR POOR  TRUSTING   ANIMALS HAVE BEEN "LIVING A HELL", LIKE HAVING A GESTAPO IN THEIR SHORT LIFE.  WHY DO THEY HAVE TO SUFFER LIKE THAT??? THE HEALTHIER ARE ANIMALS THE HEALTHIER WE ARE, OUR PLANET.   WHEN THIS CAPITAL CRIME  AGAINST ANIMALS IS GOING TO STOP?????!!!!!!!!!!
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When minimum wage act was placed into law during the Roosevelt Administration, it helped to create the "Middle Class".  There  has always been opposition to minimum wage and even the eight hour day, all declared doom for the economy if enacted. These rights were put into law and the world did not come to an end; in fact that higher wages gave people the opportunity to have the money to buy their own homes and move to the white suburbs ( free of non-white people).  A lot of readers claim that minimum wage hurts the Middle Class, and that these wages were meant for young kids just wanting to have a little pocket change.  If the right has its way they would want to do away with minimum wage altogether, and if they do so there will not be a Middle Class.  In the 1970's the Auto Industry had 1.5 million workers, but now it has only 300,000 ( at lower wages ). The companies will pay you what ever they fell like paying you, and you will just have to love it or leave it.  If you destroy minimum wage; you won't like what you get. 
Feb 15, 2013 4:06AM
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 I live in Washington state( in Wash the min wage is well above $9 an hour ) and I have no problems being able to go to Mac's to get something to eat.
I have not seen any Mac's close down.


Feb 15, 2013 3:50AM
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The last time the minimum wage went up with all fast-food chains spending millions to block, well what happened? Most of them lowered there prices, came up with new products (mac rib sandwich). All of them did the same thing. They are all open and doing business at higher profits. No complaints now, franchise's cost more and bringing in the money and they still get all the tax breaks. Banks are making record profits on higher and more new fees. So don't tell me the higher minimum wage will hurt anyone, small businesses will get by with government help. That's why big business doesn't care, banks won't loan small businesses and can't get loans, why? Big banks, all banks have found out they can keep our money and charge us for it. That's where the real money is, take our money. Lend it out to other big banks, charge us fees to hold it and they all get rich. But not the middle class. They don't have the money to play the rich mans game. They just get poorer and poorer. Every US Senator is a millionaire or will be by the time they leave office. We need more true middle class people in office, ones that really know how it is to scrape by. Cut congresses staff, tie their insurance to the same as ours, state by state. Give Wal-Mart a chance to get into Banks and insurance. Completely take away oil company subsidies. Let the middle class get elected by not allowing any donations above a certain amount. No campaigning on work time. Do it on week ends. Stop electing dentists and doctors to national office because it pays better than being a Doctor and Dentist. Don't forget the founding fathers weren't God. They aren't still sitting up there making laws and changing the Constitution as it should be as time goes by and our lives change. Never block a voter from voting, lets vote online or thru absentee ballots. No need to all show up on certain days. Just let them vote, isn't that the main intent of our constitution. No representation with out the right to vote.
Feb 14, 2013 10:30PM
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More disgusting eugenics practices by our globalist leaders.
Feb 14, 2013 9:44PM
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As a farmer's wife, we do not give any drugs to cattle.  What happens to them after we sell at market ,we are not responsible for.  We have struggled with drought, army worms, etc. just trying to keep our cattle with hay through the winter.  Give the farmers a break.
Feb 14, 2013 7:43PM
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If this bothers you, please buy your beef or any other proteins from a producer.  I raise cattle in South Dakota and they do not get any growth hormones or antibiotics.  You will almost ALWAYS get a better product from a small business than a m****duction corporation.  That goes for all products, not just food.
The choice is ultimately the consumer's.  The big companies have managed to get that big because consumers have been purchasing the least expensive products regardless of quality.  
Feb 14, 2013 6:46PM
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What a surprise!  This is exactly why organic beef producers have all of my support and $$$'s!
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