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Media giant Time Warner has announced plans to spin off its Time Inc magazine unit into an independent, publicly traded company by the end of the year.

Time Inc is the company behind publications including Time, Sports Illustrated, Fortune and People.

Last month, Time Warner reported a rise in profits but said revenues at Time Magazine had fallen 7%, adding that it planned to restructure the business.

The publishing industry has suffered as readers and advertisers move online.

"After a thorough review of options, we believe that a separation will better position both Time Warner and Time Inc," Time Warner chief executive Jeff Bewkes said

"A complete spin-off of Time Inc provides strategic clarity for Time Warner Inc enabling us to focus entirely on our television networks and film and TV production businesses, and improves our growth profile."

Media company Meredith, which had been in talks with Time Warner about combining their magazines, said it respected Time Warner's decision.