On Thursday morning, Time Inc. (NYSE: TIME) reported the fourth quarter financial results, and announced it has acquired Viant Technology Inc. which is the owner of Myspace and vast advertising technology company.
Time Inc. Chairman and CEO Joe Ripp said, "Time Inc. is the leading content company and the preferred destination for people who crave storytelling that is genuine, compelling and impossible to forget. Mobility and social media are allowing us to reach larger audiences than ever before. With the acquisition of Viant, we will build on our ability to more effectively target consumers, thanks to new technology, which also presents more attractive opportunities for meaningful emotional engagements with current and future audiences. In this world, trusted brands, quality content and deeply engaged audiences will win."
Total revenues decreased 2% from last year $895 million to this quarter $877 million. Net income slumped around 88% to only $17 million compared with $145 million in the same quarter last year. Diluted earnings per share plunged almost 88.6% to $0.15 from last year $1.32. Shares of Time Inc. tumbled 8.46% to $12.44 during Thursday afternoon trading.
The company said profit dropped in its latest quarter as the world’s largest magazine publisher continues to invest in its transformation and beef up its digital platforms. Even its earnings decline was steeper than expected, revenue topped expectations and the company offered an upbeat sales outlook for the year.
Time Inc. has entered into a series of agreements to acquire the assets of Viant Technology Inc. This merger will combine Time Inc.’s premium content, visitor data and subscriber, and advertising inventory with Viant’s first-party data and targeting capabilities to bring substantial value to customers of both companies.
“This acquisition is game changing for us,” said Time Inc. Chairman and CEO Joe Ripp. “Marketers are selecting media partners that have either data-driven capabilities or premium content; we will be able to deliver both in a single platform, and will stand apart from those that offer just one or the other. In other words, we will be able to deliver advertisers’ messages targeted to optimal audiences across all types of devices, along with the ability to measure ROI.”