According to multiple sources, Time Inc. is considering the logistics behind a merger with struggling tech pioneer Yahoo.
Time Inc. is small by market cap, at just $1.5 billion, but the company owns popular magazines and web destinations including People, Time, Fortune and Sports Illustrated. Yahoo sees hundreds of millions of users click through their digital destinations on an annual basis, a number that would certainly benefit Time's other properties.
According to those looking at the deal, "Time Inc. may see it as a worthwhile because it could pursue a structure with Yahoo called a Reverse Morris Trust, a tax-free transaction in which one company merges with a spun-off subsidiary."
In any deal, Yahoo CEO Marissa Mayer would be let go, with Time CEO Joe Ripp taking over the position.
Source:
BBG
According to those looking at the deal, "Time Inc. may see it as a worthwhile because it could pursue a structure with Yahoo called a Reverse Morris Trust, a tax-free transaction in which one company merges with a spun-off subsidiary."
In any deal, Yahoo CEO Marissa Mayer would be let go, with Time CEO Joe Ripp taking over the position.
Source:
BBG
