NEW YORK (AP) -- Shares of the media company Meredith tumbled Thursday after talks with Time Warner to acquire magazines such as People, InStyle and Real Simple broke down.
THE SPARK: After heavy negotiations on price and the structure of the acquisition, Time Warner Inc. announced Wednesday that it would simply spin-off the publications, rather than sell them. That will make Time Inc. a separate, publicly traded company.
THE BIG PICTURE: Meredith Corp., based in Des Moines, Iowa, had hoped to expand its publishing domain. The company now publishes magazines aimed at women such as Better Homes and Gardens, Fitness and Family Circle. It also owns the Allrecipes.com, EveryDay with Rachael Ray and FamilyFun brands.
THE SHARES: Down $2.98, or 7 percent, to $37.32 in heavy morning trading, after falling as low as $36.67 earlier in the day. Over the past 52 weeks, the company's shares have traded between $26.89 and $45.95.
Over the past year, the shares have gained about 24 percent.