Time Inc. (NYSE: TIME) said on Friday it has pondered potential offers but decided to pursue its own strategic plan, a decision which sent its shares tumbling more than 18%.
The publisher of such magazines as Sports Illustrated and People said the strategic plan included re-vamping its cost structure and focusing on its digital business.
Time said it had not initiated a sale process, but the board evaluated expressions of interest with the help of external advisers.
The Wall Street Journal reported in December that the publisher had tapped Morgan Stanley and Bank of America to help field takeover or partnership interest.
The publisher has been the subject of buyout rumors amid a relentless decline in print media as advertisers shift to digital platforms.
One media outlet reported earlier this month that U.S. media group Meredith made a preliminary offer that fell short of Time's price expectation.
A possible sale had been in Wall Street's focus since it emerged late last year that an investor group led by Edgar Bronfman Jr., which also included Len Blavatnik’s Access Industries, had made a buyout offer. The company's market value at Thursday's closing price had been $1.8 billion U.S., and a deal was expected to fetch around $2 billion.
Shares of Time have gained more than 2% in the year to date and more than 22% over the prior 12-month period. By comparison, the S&P 500 index is up nearly 7% in the year and 15% in the last 12 months. The shares were trading mid-morning Friday at $14.93 U.S., down $3.38, or 18.4%, from Thursday’s close.
