Wells Fargo gives Time Inc. Outperform after spin-off
Time Warner Inc. has completed the previously announced spin-off of Time Inc. 6/9 from Time Warner. Time Warner has distributed all outstanding shares of Time Inc. common stock to Time Warner shareholders at a distribution ratio of one share of Time Inc. common stock for every eight shares of Time Warner common stock held on the 5/23/14 record date.
Starting 6/9, Time Warner stock will no longer include the value of Time Inc.
Commenting on the spin-off, Time Warner Chairman and Chief Executive Officer Jeff Bewkes said: “The spin-off of Time Inc. completes the process we began several years ago to position Time Warner as the world’s leading video content company. Our strategy reflects our commitment to delivering strong returns to our shareholders as we light up the world with the best storytelling. The spin-off gives Time Warner even more focus as we continue to deliver on this strategy.”
Eric Katz, Associate Analyst, Marci Ryvicker, Senior Analyst and others at Wells Fargo Securities announced they are initiating Time Inc. with an Outperform and a $27-29 range. Their positive bias is based on: