American Express Company
) announced that it will divest its subsidiary American Express
Publishing Corporation to Time Inc., a division of
Time Warner Inc.
), a leading global media company for an undisclosed amount.
American Express has been associated with Time Inc. for the past
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American Express Publishing Corporation provides affluent
consumers with reliable information regarding luxury lifestyles
through its five multi-media magazines, namely, Travel + Leisure,
Food & Wine, Departures, Executive Travel and Black Ink.
The divestiture is expected to culminate in the fourth quarter of
2013 and is subject to customary closing conditions. This is
about the same time when Time Inc is scheduled to separate out of
Time Warner and operate independently, so that the latter can
focus on its TV networks and Warner Bros, studio. Post the sale,
American Express Publishing Corporation will become a wholly
owned subsidiary of Time Inc. However, eligible AXP Card Members
will continue to receive the Departures, Black Ink and Executive
Travel magazines of American Express Publishing.
American Express Publishing that has been a subsidiary of
American Express since 1968 has succeeded in delivering excellent
editorial products. However, as of recently, the holding company
has been facing problems to engage in non-financial activities
owing to banking regulations. Thus it decided to divest this
publishing business to Time Inc. with which it has been
associated for two decades now for receiving management services
from the same. Time Inc., one of the leading names in the media
industry was selected as the ideal partner for the deal as it is
expected to complement American Express Publishing's operations.
Going forward, AXP expects to take up initiatives to promote and
market American Express Publishing for Time Inc.
American Express Publishing Corporation has been focused to
provide its readers with lifestyle information so that they can
make informed decisions. Its brands are being published in more
than 70 countries with 25 editions and in nine languages. On the
other hand Time Inc. is an esteemed name in the same sphere. The
combination of the two is expected to create synergies that would
enhance American Express Publishing's brand value further.
American Express currently carries a Zacks Rank #3 (Hold). Among
other payment services companies,
FleetCor Technologies Inc.
SS&C Technologies Inc.
) carry a favorable Zacks Rank #2 (Buy) and appear