Time Inc. acquires majority of Essence Communications Partners

Jet, Jan 24, 2005 by Ed Lewis

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 and 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 now than ever."

After the transaction is completed, as non-executive Chairman and Founder of Essence, Ed 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.

Time Inc., which is owned by Time Warner, purchased 49 percent of Essence Communications, in 2000.

Essence Communications publishes Essence magazine as well as Suede, the fashion and beauty magazine inspired by the young, multicultural urban fashionista. Essence Communications also produces the Essence Music Festival, the Essence Awards, Essence Books and has brand licensing agreements for Essence Eyewear and Hosiery.

Time Inc. is the world's leading magazine publisher with 300 million readers and publishes such magazines as People, Time, Sports Illustrated and InStyle.