Time Inc. Merger Wouldn’t Impact Tax-Free Stock Status

Time inc logo GIf Time Inc. were purchased or merged with another company, its tax-free stock swap would be safe. Tax expert Robert Willens confirmed to The New York Post the initial speculation that Time Inc. would have to wait two years or risk losing its tax-free, spin-off status, was incorrect.

Willens said the waiting period is about six months, which means Time Inc. is ripe for the picking. That might be music to the ears of Meredith execs; specifically its CEO Steve Lacy. Lacy and Meredith had tried and failed to merge with Time Inc. last year. Still, Lacy has said that he remains interested in a deal. Willens’ tax talk might be enough to push things ahead one more time.

“Meredith could acquire Time Inc. right now without jeopardizing the tax-free status of the spinoff,” Willens told the Post. Fire up the rumor mill!