Time Inc. said last month it wasn’t going to sell itself, signaling it could do better on its own than the $18 a share that magazine publisher Meredith offered.
But what was really going on is Time wanted a higher bid, more like $20 a share, and Meredith and other potential buyers couldn’t justify getting to that price. Or couldn’t quite raise that much.
So what’s happened in the weeks since Time decided to go it alone?
Today, the stock is down 16 percent, trading as low as $12.50 after it reported an earnings miss for the first quarter. It had sales of $636 million instead of the expected $641 million, and a loss of 18 cents a share instead of 15 cents.
But the main thing to know is its business is shrinking. Also, it cut the dividend from 19 cents to 4 cents a share. There’s just less reason now to own the stock.
The company, which publishes Sports Illustrated, People and Fortune, plans to sell off some titles and cut more staff.
Which magazines? The company hasn’t said, but you can look at all its titles here and guess which ones are “non core” to the business.
Media reporters (current and former), doing it via Twitter this morning:
(that's Q1) ... company still thinks it can come to $1 billion in digital revenue. Company had $512 million in digital ad revs last year.— Edmund Lee (@edmundlee) May 10, 2017
Time Inc CEO says magazine publisher is selling "non-core" assets to "rationalize our portfolio." "There are no sacred cows."— Gerry Smith (@gerryfsmith) May 10, 2017
"Here we have a $13, $14 stock when somebody was willing to pay $18 for the company" - Time Inc shareholder Leon Cooperman to management— Shannon Bond (@shannonpareil) May 10, 2017
This article originally appeared on Recode.net.