(post by Dee) Time Inc, the news and media powerhouse that got the internet game right is feeling the burden of residential real estate market collapse… they are reorganizing big time. Read on. BUT how is that possible?! What does real estate and news have in common? Well, let’s examine!

Today’s economy really is more interconnected than ever. The residential real estate marker troubles caused banks, who issued those bad mortgages, then sold them to others, to get into major financial troubles. Wall St, where those terrible loans based on overpriced properties were bundled, turned into securities, then derivatives, got hit next. Financial powerhouses failed. Now other industries are feeling it. With retailers, financial sector, auto makers, and of course real estate firms in doldrums, who is going to spend advertising dollars? Isn’t news and media all about income from advertising?

TIME Inc Restructures – Breaking News

With sharp decreases in advertising spending affecting media and news industry, Time Inc. reacted by announcing major restructuring of its business units and massive staff changes. Time Interactive, which had been the most profitable and fastest growing portion of the company is believed to centralize its management structure and link it closer to its other, traditional business units.

The 24 US magazines and websites of Time Inc. will be grouped into three business units, each divided based on titles that share similar audiences and advertisers, and each reporting to one senior corporate executive. Every unit will be structured in a similar way, with ad sales, digital, financial and editorial each having a designated executive on top, all reporting to a General Manager. Such GM will report to EVP and CFO Howard Averill. Here are the expected three business units of Time Inc:

News Business Unit: TIME, the Fortune|Money, and the Sports Illustrated, as well as Life.com and GEE, under the leadership of John Squires, EVP. Style and Entertainment Business Unit: PEOPLE, InStyle, Entertainment Weekly, and Essence, headed by Ann Moore, EVP. Lifestyle Business Unit: Real Simple, This Old House, All You, Southern Living, Cooking Light, Sunset, Health, Cottage Living, Coastal Living, Southern Accents, MyRecipes.com and MyHomeIdeas.com will report to Sylvia Auton, EVP.

Other groups: John Huey will continue as Time Inc.’s Editor-in-Chief with managing Editors of al three business units overseen by him. Time Inc. Advertising Sales and Marketing group headed by Stephanie George, President will have a challenging task of ramping up revenues in a down market. Consumer Marketing and Sales group (responsible for newsstand and subscription title sales) will be run by Brian Wolfe, EVP.

These organizational changes saw Ned Desmond, President of Time Inc. Interactive leaving the company. Under his leadership in six years, Tim Inc’s websites reached more than 26 million unique visitors per month.

So, there you have it… breaking News news and “real estate as economy as a leading indicator theory” from your friends and economists at BrokerTales.