Time Inc. to Acquire Majority of Essence Communications

Posted on January 14, 2005

Time Inc. has signed an 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 there had always been an understanding between Inc. and Essence that if they ever wanted to sell their remaining interest then Time Inc. would be interested in acquiring it.

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.

Essence Communications publishes Essence, at lifestyle magazine that reaches more than seven million African-Americans each month as well as Suede, a fashion and beauty magazine. 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 a magazine publisher with 134 regular-frequency titles and 300 million readers. Time Inc. is a wholly-owned subsidiary of Time Warner Inc., a leading media and entertainment company.