MUMBAI: Time Warner has said that it plans to spin off its Time Inc. into an independent, publicly traded company by the end of the calendar year.

Time Inc. is the publisher of magazines like Time, Sports Illustrated, Fortune and People.

The proposed transaction will be structured as tax-free to Time Warner stockholders. The transaction is contingent on the satisfaction of a number of conditions, including completion of the review process by the Securities and Exchange Commission of required filings under applicable securities regulations and the final approval of transaction terms by Time Warner?s Board of Directors.

Time Warner Chairman and Chief Executive Officer Jeff Bewkes said: ?After a thorough review of options, we believe that a separation will better position both Time Warner and Time Inc. A complete spin-off of Time Inc. provides strategic clarity for Time Warner Inc., enabling us to focus entirely on our television networks and film and TV production businesses, and improves our growth profile. Time Inc. will also benefit from the flexibility and focus of being a stand-alone public company and will now be able to attract a more natural stockholder base. As we saw with the prior spin-offs of Time Warner Cable and AOL, we expect the separation will create additional value for our stockholders.?
 
Time Inc. CEO Laura Lang has advised Time Warner that she will stay on through this process and until after a successor has been identified.

?Laura indicated to me that we should find a different kind of CEO for this new public company, and I respect her decision,? Bewkes said. ?She has been a great partner who has given Time Inc. forward momentum to make this transition possible, and I look forward to working with her to select the right leader to head the company as an independent entity.?