The future of IPC Media, the London publisher of Country Life, Marie Claire and NME, was today plunged into fresh uncertainty after US parent company Time Warner announced plans to spin off its global magazine division.
Time Inc, which includes IPC, will be floated on the New York stock market as a separate company as Time Warner focuses on faster-growing TV and film interests such as CNN, HBO and the Warner Bros movie studios.
Time Warner’s decision comes after talks to merge Time Inc with US publishing group Meredith collapsed. In a sign of turmoil, Time Inc chief executive Laura Lang is quitting after 15 months.
IPC maintained that it is business as usual at Britain’s biggest magazine publisher but the 1800-strong staff are already on edge as up to 150 jobs face the chop in a 90-day consultation.
The spin-off will raise questions about whether IPC should remain part of Time Inc. Few of IPC’s titles have much cachet in America while US brands such as People and Sports Illustrated face a similar challenge in the UK.
Private equity buyers could be interested in IPC despite declining print revenues. Latest UK accounts show a £45 million profit on £331 million of sales.
Time Inc has repeatedly said IPC is “a core part” of the group, but the sell-off echoes moves by News Corporation and Pearson to part with print assets.
