Official: Bonnier Wins Time Inc. Bid, Joins New York Publishing World

Unofficial word came late yesterday, and Time Inc. just announced that Stockholm-based Bonnier is the winner in the prolonged sweepstakes for 18 magazines on the block since last fall. The price, according to a source familiar with the negotiations, is said to be around $200 million, less than the $300 million Time Inc. had initially sought. Some key soundbites: Time Warner CEO Dick Parsons: "This is a smart transaction that advances both the interests of our shareholders and Time Inc.'s future success. This sale and our other recent divestitures are enabling us to concentrate our resources on developing our most strategic and promising opportunities to grow our businesses." Time Inc. CEO Ann Moore: "I am very pleased to have found the right buyer for The Parenting Group and Time4 Media, one that will be able to nurture their specialized titles. This transaction underscores Time Inc.'s commitment to focus our energy, resources and investment on our biggest and most profitable brands. I'd also like to welcome Bonnier to the New York publishing world, which continues to be an active and vibrant industry." Bonnier Magazine Group chair Jonas Bonnier: "We are extremely pleased to have reached an agreement that elevates Bonnier to the highest echelon of consumer publishers nationwide. The potential synergies between the new properties and World's existing titles as well as the corporate and individual growth that it will lead to makes the future bright for all of us." The full release: BONNIER MAGAZINE GROUP BUYS 18 MAGAZINES FROM TIME INC. (New York, January, 25, 2007) Bonnier Magazine Group and Time Inc., a Time Warner company (NYSE: TWX), today announced that Bonnier will acquire Time Inc.'s Parenting Group and Time4 Media titles. Through this transaction, Stockholm-based Bonnier and its U.S. magazine partner, World Publications, will become one of the largest consumer publishing groups in America, with 40 titles and annual revenue of more than $350 million. Under the proposed agreement, Bonnier will acquire 18 titles, which will join World Publications' award-winning, market-leading collection of magazines, such as Saveur, Spa and Islands. The expanded portfolio strengthens the company's position among special interest magazines and increases its new media opportunities. Jonas Bonnier, Chairman of the Bonnier Magazine Group, said: "We are extremely pleased to have reached an agreement that elevates Bonnier to the highest echelon of consumer publishers nationwide. The potential synergies between the new properties and World's existing titles as well as the corporate and individual growth that it will lead to makes the future bright for all of us." This is Bonnier's third acquisition in the United States during the past year and its first major purchase with World for a magazine group. Terry Snow, CEO of World Publications, said: "These new titles are a perfect strategic fit with World's special-interest magazines and what we excel at connecting people with their passions. And I am especially looking forward to working with this talented group of editing and publishing executives. We're committed to building high-quality brands through exceptional editorial products, whether in print or online, and the potential to be the leading multimedia resource in our new and existing special-interest areas is very exciting to us." Dick Parsons, Time Warner Chairman and Chief Executive Officer, said: "This is a smart transaction that advances both the interests of our shareholders and Time Inc.'s future success. This sale and our other recent divestitures are enabling us to concentrate our resources on developing our most strategic and promising opportunities to grow our businesses." Ann Moore, Time Inc. Chairman and CEO, said: "I am very pleased to have found the right buyer for The Parenting Group and Time4 Media, one that will be able to nurture their specialized titles. This transaction underscores Time Inc.'s commitment to focus our energy, resources and investment on our biggest and most profitable brands. I'd also like to welcome Bonnier to the New York publishing world, which continues to be an active and vibrant industry." The acquired magazines are as follows: Parenting, Babytalk, Popular Science, Field & Stream, Outdoor Life, Yachting, MotorBoating, Salt Water Sportsman, Skiing, SKI, TransWorld SKATEboarding, TransWorld SNOWBOARDING, TransWorld MOTOCROSS, TransWorld SURF, ride bmx, QUAD, SHOT BUSINESS and TransWorld business. All editorial, sales and marketing staffs will remain at their current offices, primarily in New York, California and Colorado. The acquisition is subject to regulatory approval. J.P. Morgan Securities Inc. acted as financial advisor to Time Inc. on this transaction; AdMedia Partners Inc. acted as financial advisor to Bonnier.

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Official: Bonnier Wins Time Inc. Bid, Joins New York Publishing World

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