Once threatened by Yahoo, Time Inc. may now be its savior

[Wireless News]

http://l.yimg.com/bt/api/res/1.2/1uHGCTRMGlYycAX7WOVnGg--/YXBwaWQ9eW5ld3NfbGVnbztmaT1maWxsO2g9ODY7cT03NTt3PT EzMA--/http://media.zenfs.com/en-US/homerun/digital_trends_973/5813ea5cd70321b99fa9c632345ff953 (http://news.yahoo.com/once-threatened-yahoo-time-inc-231311501.html)Magazine publisher Time Inc. may be looking into merging with Yahoo’s core digital operations, potentially saving the company from being subsumed by potential buyers. According to-Bloomberg, executives from Time Inc.,-which owns a slate of established print publications, including- Time , Sports Illustrated , People , and Fortune magazines, were receptive to the idea after-a presentation from Citigroup bankers advocating for the maneuver. Word of the merger comes a week after Yahoo said-it would lay off 15 percent of its staff, and form a committee to explore the potential offers for-selling part or all of-the company. Numerous companies have expressed interest in purchasing Yahoo’s spun-off media business, including-Verizon, AT&T, and Comcast. Valued at $1.5B, Time Inc. is considerably smaller than the competition and is the only company reportedly considering a merger.-According to the report, the presentation laid out how the two companies could merge through a tax-free transaction called a “Reverse Morris Trust,” which allows a company to merge with a spun-off subsidiary. As a result,-Time Inc. would only be interested in Yahoo’s “core business.” Yahoo CEO Marissa Mayer would likely not be a part of the Time-Yahoo conglomerate. Related: Yahoo! lost big on its failed streaming service, Yahoo Screen. On the one hand, Yahoo’s board of directors would likely opt for a-complete sale, according to a Bloomberg source. On the other, a tax-free-merger may wind up providing-the best value for Yahoo shareholders, whose stock has dropped 29 percent in the last year. Time Inc. CEO Joe Ripp, who once served as a vice president at AOL, reportedly has-“ideas” for how to expand the combined company’s reach.-Time Inc., a historically print-centric operation, apparently has high hopes for Yahoo’s 200-million-unique-viewers. Time Inc. recently purchased MySpace parent company Viant Technology Inc. to expand its data-gathering and targeted advertising networks. Also watch: Hands-On With Sony’s Interactive Xperia Projector Concept Please enable Javascript to watch this video



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