Time Warner (TWX) announced the details of its plan to slim down its magazine division. The company will sell 18 smaller titles in a deal expected to raise $300 million, according to an article in today’s Wall Street Journal. The big titles, including Time, Sports Illustrated and People, are staying put.
The article quotes Anne Moore, CEO of Time Inc., the magazine division, stating, “Time wanted to concentrate on its biggest brands because those titles are likely to be more successful online.”
I think Ms. Moore’s viewpoint is a reflection of consensus thinking regarding traditional media and the Internet. But I challenge you once again to offer a single leading Internet brand that has translated directly from traditional media. Google (GOOG), eBay (EBAY), Yahoo! (YHOO), YouTube, MySpace, Amazon (AMZN), ESPN and some news sites come to mind as having effectively translated to the Net, but I’d say that Time Warner probably has a better chance of creating shareholder value on the Internet by turning its small, niche magazine titles into big, new Internet properties than just continuing to maintain online versions of their big magazines.