Save the date: On June 6, Time Inc. will officially complete its long-awaited spinoff from parent company Time Warner, which was first announced over a year ago.
According to a filing with the Securities and Exchange Commission, current Time Warner shareholders will receive one share of Time Inc. stock for every eight shares of Time Warner stock owned as of May 23. Upon completion of the spinoff, Time Warner shareholders will own 100 percent of the outstanding shares of Time Inc. common stock, which will likely trade under the symbol TIME. (Time Warner is currently listed as TWX.)
In anticipation of the spinoff, Time Inc. CEO Joe Ripp implemented a slew of cost-saving measures, such as combining the company’s formerly separate brand clusters under one operating umbrella and implementing layoffs that will eliminate about 500 jobs. The company is also looking into relocating from its longtime headquarters at the Time Life building in Midtown to a less expensive location downtown. In the SEC filing, the company said that it anticipates “additional headcount reductions and real estate consolidations in the future.”
“As an independent, publicly-traded company, we believe we can more effectively focus on our objectives and satisfy the strategic needs of our business,” Ripp said in a letter to investors.