New reports that Time Warner will dump Time Inc.

There have been rumors for several months that Time Warner (NYSE: TWX) will sell or spin out its magazine unit, Time Inc. which was founded in 1923. In the first quarter of the year, the division lost $33 million as revenue fell 23 percent to $806 million. With advertising pages at some of its largest magazines running down over 20 percent, the results may not get better this year.

Time Warner appears to be ready to retool itself as a film production and network content business. It has already spun-out Time Warner Cable (NYSE: TWC) and will go through a similar transaction with AOL at the end of this year.