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Evelyn Webster, chief executive of Britain's biggest consumer magazine company IPC, flew into New York last night. Since IPC is part of US media giant Time Warner, it's hardly a surprise that Webster should jet over to head office. But staff at IPC's London HQ on the South Bank - home to around 75 magazines ranging from Country Life and TV Times to NME and Loaded - are twitchy. The chatter in their offices, the Blue Fin building near Tate Modern, is that their magazine empire could be up for sale.
Bankers have been sniffing around too. One media figure says two City contacts have sounded him out about IPC in separate conversations in the last month. The fact that Webster's predecessor and mentor, Sylvia Auton, moved across to New York earlier this year has also fuelled speculation that she could help prepare a sale.
IPC, which Time Warner bought from private equity for £1.1 million in 2001, dismisses the rumours. A spokesman describes it as "an old story" that pops up every so often. Indeed those who know IPC say there's been on-off internal discussion about it for years. Yet the talk now is not just confined to London. Some US analysts are convinced that Wall Street-listed Time Warner could soon sell its entire magazine business, known as Time Inc. This comprises the flagship US stable of 23 titles including People, Time and Sports Illustrated, as well as IPC.
Dave Miller, media analyst at Caris & Company, said in a recent note: "It would not surprise us to see management dispose of this business."
But the reasons for Time Warner chief Jeff Bewkes to sell Time Inc or IPC are not as obvious as might first seem. While Time Warner's magazines have certainly suffered in the recession - which has been even harder on print media in the US than in the UK - they are still a powerful force. Time Inc is indisputably the biggest magazine publisher in America, ahead of Conde Nast. In the UK, IPC and rival Bauer are roughly first equal in terms of market share.
Time Inc, including IPC, contributed 10% of group profits in 2008. And the most recent figures at Companies House for the UK operation show IPC Media Ltd made a profit of £65 million on turnover of £405 million - albeit in 2007, before recession struck.
Yet while the mags may turn over a lot of cash, Time Warner is looking not only for profit but also growth - and that is coming chiefly from its TV and movie operations. Less profitable parts of the business are being dropped. So cable networks were split off earlier this year. Internet service AOL, acquired with great fanfare a decade ago, is also being spun off by the end of 2009.
That is why analysts suspect the magazines are ripe for a sell-off.
There are also signs that Time Inc is feeling the strain. Publication of its US quarterly mag Time Style & Design was suspended this week because of the advertising slump. No wonder Time Inc is discussing charging for its websites.
Meanwhile, some of its UK titles, such as NME, Nuts and Loaded, have seen sales dive around 25% in the last year.
While some US analysts are calling for all the magazines to be sold off, a few believe there is a compelling case only to sell the British outfit. The argument goes that while the 2001 purchase of IPC was relatively smooth, the UK and US operations have not found much synergy since. Only one US title, InStyle, has made much impact here while Time's other mega-brands such as People and Sports Illustrated are barely known in the UK. Similarly, few of IPC's UK titles have crossed the pond.
Arguably if Time Warner did sell IPC, it would not be missed.
UK publishers who know how IPC operates say it is a lean, well-run operation. "There is not much fat to cut," says one observer admiringly, who reckons the company could fetch in the region of £800 million - a useful sum for Time Warner to pay off some debt.
Of course, there is no evidence that Time Warner is looking for a buyer for IPC - and there aren't many likely suitors around in any case.
But the internet is hastening change across the UK magazine industry. Shrewd observers anticipate more struggling titles may have to be axed. Over in Soho at IPC's rival Nat Mags, publisher of Harpers & Bazaar and Esquire, the new boss Arnaud du Puyfontaine is expected to carry out a major shake-up this autumn.
So whatever happens at IPC, don't expect things to stay the same.
