Time Warner Inc plans to spin off its division that publishes titles like Time, Fortune and People into a separate company, ending weeks of merger negotiations with Meredith Corp.
Time Warner said on Wednesday that the process to separate Time Inc into an independent public company will likely take place by the end of the year.In a separate statement, Meredith said it had been in talks to combine Time Inc's titles that focus on lifestyle and entertainment including People and InStyle with Meredith's titles such as Everyday Living with Rachael Ray and Better Homes and Gardens into a new publicly traded company.“We respect Time Warner's decision and certainly remain open to continuing a dialogue on how our companies might work together on future opportunities,” Meredith Corp CEO Stephen Lacy said in a statement.Morningstar analyst Michael Corty did not rule out a future deal between the two companies. “Clearly, Time Warner did not get the right price from Meredith. I don't think this 100 per cent eliminates some kind of combination with Meredith in the future,” he said.

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