Time Inc. (NYSE:TIME) announced on Monday that it will be partnering with Barclays (L:BARC) to license its Fortune brand and launch Fortune 500 stock indices.
The partnership is part of Time’s effort to diversify its revenue in the index-investing business. The company, like other publishers, has been struggling as its print circulation shrinks.
The partnership, which will be launching the Barclays Fortune 500 Equal Weighted Index in July, will track 450 publicly traded companies with combined revenue of over $11 trillion, according to a report from Reuters.
“The companies that comprise the FORTUNE 500 are some of the strongest, highest revenue generators in the U.S. and we believe that market participants will benefit from exposure to these companies through the investable indices that we are creating,” said Dupe Adeyemo, Director in EFS Solutions at Barclays in a press release.
The new index will not include private companies, companies that do not meet Fortune 500 liquidity requirements, and master limited partnerships.
Fortune 500 companies represent two-thirds of the U.S.’s GDP. Revenue is $12 trillion, profit of $890 billion and market value of $19 trillion. These companies employ 28.2 million people around the world.
Brian O’Keefe, Fortune’s deputy editor, said the index is a creative way for the company to expand its brand.
“Frankly, this index should have been done a long time ago,” he said.
Profit-weighted and revenue-weighted index are slated to launch later this year. It is still unclear whether the index will generate meaningful revenue for Time Inc. (NYSE:TIME)
Time Inc. (NYSE:TIME) in Revenue Struggle
Time Inc. (NYSE:TIME), which is struggling to generate revenue, considered a sale earlier in the year, but discussions with Meredith Corp failed when the two companies could not come to an agreement on price.
The company’s brands include Fortune, People, Time, Instyle, Sports Illustrated, Southern Living and Real Simple.
To help improve revenue, Time cut 300 positions, equivalent to 4% of its workforce.
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