Time Spinoff Seen as Hunter or Prey With $3.9 Billion: Real M&A

The spinoff of Time Inc. to create the world’s largest publicly traded magazine publisher may be just the beginning of deals for the owner of People and Sports Illustrated.

With analysts estimating an enterprise value of about $3.9 billion, Time Inc. would be bigger than any other publicly held company focused on magazine publishing after it separates from Time Warner Inc., according to data compiled by Bloomberg. Following a failed attempt to divest some magazines to Meredith Corp., Time Inc. could buy Meredith, which is half its projected size, to consolidate costs, said Wunderlich Securities Inc. Or, Time Inc.’s titles and its more than $3 billion in annual revenue may lure private-equity interest, said Wedbush Inc.