NEW YORK, March 6 (Xinhua) -- Time Warner on Wednesday said it planned to spin off its affiliated publishing unit Time Inc. into an independent, publicly-traded company.
"After a thorough review of options, we believe that a separation will better position both Time Warner and Time Inc.," Time Warner' s Chair and Chief Executive Officer Jeff Bewkes said in a statement.
Bewkes said the complete spin-off will benefit both. It would provide "strategic clarity" for Time Warner by enabling it to focus entirely on its television networks, film and TV production businesses, and improving its growth profile.
Meanwhile, "Time Inc. will also benefit from the flexibility and focus of being a stand-alone public company and be able to attract a more natural stockholder base," Bewkes noted.
Media reports citing sources familiar with the matter said Time Warner had been negotiating with Iowa-based publisher Meredith Corp. for months to divest some of Time Inc.' s magazines to Meredith.
The deal is reportedly to be finished by the end of this year.
Shares of Time Warner advanced 1.41 percent to 56.24 dollars a share during the U.S. stock market' s after-hour trading on Wednesday.
Time Warner has conducted several spin-offs in recent years, including Time Warner Cable and AOL (American Online) in 2009.
Time Inc. publishes over 100 magazines, most notably known by its namesake Time as well as other magazines such as Sports Illustrated, Fortune and People.