Time spins lower in first trades since spinoff from Time Warner
June 11, 2014, 12:01 am TWN
NEW YORK--Shares in magazine publishing giant Time Inc. lost ground Monday in the first trading day after its spinoff from U.S. media conglomerate Time Warner.
Trading under the symbol "TIME" the publishing group dropped 0.77 percent to close at US$23.30.
The split formalized Friday separated the publisher of the famed Time newsweekly from media giant Time Warner, ending a marriage that merged the two firms in 1990.
The new firm is the latest publishing spinoff from a big conglomerate. It comes on the heels of Rupert Murdoch's News Corp. splitting its entertainment and publishing segments, and a similar action planned by Tribune Co.
Morgan Stanley analyst Toni Kaplan said in a note to clients that the new company is likely to see hard times in the short term.
"The magazine industry is in secular decline, and Time's revenue has been falling," Kaplan said in a research note.
But the analyst added that the spinoff could allow Time to invest and find new growth opportunities.