New York, NY - Time Inc. has signed a non-binding agreement to acquire the portion of Essence Communications Partners, publisher of Essence magazine, that it does not already own.
Financial terms of the transaction were not disclosed.
Ann Moore, Chairman and CEO of Time Inc., said, "We've been delighted with our investment in Essence Communications and our overall relationship with them. It's a terrific company with a great deal of talent and a wonderful brand. There has always been a mutual understanding between us that if they ever wanted to sell the remaining interest, we wanted to purchase it. So, we're especially pleased with this development."
Ed Lewis, Chairman & CEO of Essence Communications and Publisher of ESSENCE magazine, said, "Time Inc. has distinguished itself by recognizing the impact of African-Americans on a global scale, and their influence within the cultural landscape. Thanks to our partnership with Time Inc., Essence Communications is a stronger, more competitive publisher. Once the deal has been approved and we become a full-fledged member of the Time Inc. family, we're looking forward to aggressively broadening the scope of the Essence brand and penetrating new markets around the world. It will give me great pride and comfort to know that Essence will be secure for generations to come and that its prospects for even greater success will be brighter than ever. "
After the transaction is completed, as non-executive Chairman and Founder of Essence, Lewis will continue to promote the Essence brand by representing it with advertisers, professional organizations and at industry and advertising events. Michelle Ebanks, currently Group Publisher, will become President of Essence Communications.
The closing of the transaction is subject to the negotiation of definitive agreements and customary closing conditions, including any necessary regulatory approvals and the approval by Time Warner's Board of Directors.
About Essence Communications:
Essence Communications publishes ESSENCE, the preeminent lifestyle magazine that reaches more than seven million African-Americans each month as well as Suede, the fashion and beauty magazine inspired by the young, multicultural, urban fashionista. For more than 34 years, the company has provided cutting edge reporting and service on every aspect of the lives of African-Americans. Essence Communications also produces the Essence Music Festival; The Essence Awards; Essence Books and has brand licensing agreements for Essence Eyewear and Hosiery.
About Time Inc.:
Time Inc. is the world's leading magazine publisher, publishing 134 regular-frequency titles with 300 million readers. Time Inc. is a wholly-owned subsidiary of Time Warner Inc., a leading media and entertainment company, whose businesses include interactive services, cable systems, filmed entertainment, television networks and publishing.
Sonya McNair, Essence Communications (212) 642-0672
Peter Costiglio, Time Inc. (212) 522-3927