Time Warner
Encyclopedia
Time Warner is one of the world's largest media companies, headquartered in the Time Warner Center
in New York City. Formerly two separate companies, Warner Communications
, Inc. and Time Inc.
, (along with the assets of a third company, Turner Broadcasting System
, Inc.) form the current Time Warner, with major operations in film
, television
and publishing
. Among its subsidiaries are New Line Cinema
, Time Inc.
, HBO, Turner Broadcasting System
, The CW Television Network
, TheWB.com, Warner Bros.
, Kids' WB
, Cartoon Network
, Boomerang
, Adult Swim
, CNN
, DC Comics
, Hanna-Barbera
, Cartoon Network Studios
and Castle Rock Entertainment
.
spun off its non-entertainment assets due to a financial scandal over its parking operations and renamed itself Warner Communications Inc.
It was the parent company for Warner Bros. Pictures and Warner Music Group
during the 1970s and 1980s. It also owned DC Comics
and Mad, as well as a majority stake in Garden State National Bank
(an investment it was ultimately required to sell pursuant to requirements under the Bank Holding Company Act
). Warner's initial divestiture efforts led by Garden State CEO Charles A. Agemian
were blocked by Garden State board member William A. Conway
in 1978; a revised transaction was later completed in 1980.
In 1976, Nolan Bushnell
sold his Atari company to Warner Communications for an estimated $2–12 million. Warner made considerable profits (and later losses) with Atari
, which it owned from 1976 to 1984. While part of Warner, Atari achieved its greatest success, selling millions of Atari 2600
s and computers. At its peak, Atari accounted for a third of Warner's annual income and was the fastest-growing company in the history of the United States at the time.
In 1975, Warner expanded under the guidance of CEO Steve Ross
and formed a joint venture with American Express
, named Warner-Amex Satellite Entertainment
, which held cable channels including MTV
(launched 1981), Nickelodeon
(launched 1979) and The Movie Channel
. Warner bought out American Express's half in 1984, and sold the venture a year later to Viacom, which renamed it MTV Networks
.
for about $225 million. The combination was short lived: Warner sold The Franklin Mint in 1985 to American Protection Industries Inc. (API) for $167.5 million. However, Warner retained Franklin Mint’s Eastern Mountain Sports
as well as The Franklin Mint Center, which it leased back to API.
In February 1983, Warner expanded their interests to baseball. Under the direction of Caesar P. Kimmel, executive vice president, bought 48 percent of the Pittsburgh Pirates
for $10 million. The company then put up its share for sale in November 1984 following losses of $6 million. The team's elderly majority owner, John W. Galbreath, soon followed suit after learning of Warner's actions.
In 1984, due to the video game crash of 1983
, Warner sold the consumer division of Atari
to Jack Tramiel
. It kept the arcade division and renamed it Atari Games
. They sold Atari Games
to Namco
in 1985, and repurchased it in 1994, renaming it Time-Warner Interactive, until it was sold to Midway Games
in 1996. In a long-expected deal, Warner Communications announced on May 11, 1988 they were acquiring Lorimar-Telepictures
; the acquisition was finalized on January 12, 1989.
The merger of Time Inc. and Warner Communications was announced on March 4, 1989. During the summer of that same year, Paramount Communications (formerly Gulf+Western
) launched a $12.2 billion hostile bid to acquire Time, Inc. in an attempt to end a stock-swap merger deal between Time and Warner Communications. This caused Time to raise its bid for Warner to $14.9 Billion in cash and stock. Paramount responded by filing a lawsuit in a Delaware court to block the Time/Warner merger. The court ruled twice in favor of Time, forcing Paramount to drop both the Time acquisition and the lawsuit, and allowing the formation of Time Warner which was completed on January 10, 1990.
For employees and shareholders of Warner Communications, particularly Warner CEO Steve Ross, the deal was lopsided in their favor as they were paid cash for their shares. However, many shareholders in Time, Inc. were said to be unhappy about the deal. Henry Luce III, the son of Time Inc.'s founder, remarked "Because of that son of a bitch at Paramount, we had to acquire Warner in cash. That made all of the Warner people rich and all the Time people resentful." Despite it being a bull market, it would take seven and a half years for Time Warner shares to climb to the equivalent of Paramount's $200-a-share offer. Despite all the expected synergies of the Time Warner deal, its stock had never managed to outperform the Standard & Poor's 500 Index.
's Turner Broadcasting System
in October 1996. Not only did this result in the company (in a way) re-entering the basic cable television industry (in regards to nationally available channels), but Warner Bros. also regained the rights to their pre-1950 film library, which by then had been owned by Turner (the films are still technically held by Turner, but WB is responsible for sales and distribution).
Time Warner had also been owner of the Six Flags Theme Parks chain during the 1990s after near bankruptcy. It sold all Six Flags parks and properties to Oklahoma based Premier Parks on April 1, 1998.
Dick Parsons, already a director on the board since 1991, was hired as Time Warner president in 1995, although the division operational heads continued to report directly to Chairman and CEO Gerald Levin.
purchased Time Warner for US$164 billion. The deal, announced on January 10, 2000 and officially filed on February 11, 2000, employed a merger structure in which each original company merged into a newly created entity. The Federal Trade Commission
cleared the deal on December 14, 2000, and gave final approval on January 11, 2001; the company completed the merger later that day. The deal was approved on the same day by the Federal Communications Commission
, and had already been cleared by the European Commission
on October 11, 2000. Due to the larger market capitalization of AOL, they would own 55% of the new company while Time Warner shareholders owned only 45%, so in actual practice AOL had acquired Time Warner, even though AOL had far less assets and revenues.
AOL Time Warner, Inc., as the company was then called, was supposed to be a merger of equals with top executives from both sides. Gerald Levin, who had served as CEO of Time Warner, was CEO of the new company. Steve Case
served as Executive Chairman of the board of directors, Robert W. Pittman
(President and COO of AOL) and Dick Parsons (President of Time Warner) served as Co-Chief Operating Officer
s, and J. Michael Kelly (the CFO from AOL) became the Chief Financial Officer
.
According to AOL President and COO Bob Pittman, the slow-moving Time Warner would now take off at Internet speed, accelerated by AOL: "All you need to do is put a catalyst to [Time Warner], and in a short period, you can alter the growth rate. The growth rate will be like an Internet company." When the AOL Time Warner deal was announced, the vision for its future seemed clear and straightforward; by tapping into AOL, Time Warner would reach deep into the homes of tens of millions of new customers. AOL would use Time Warner's high-speed cable lines to deliver to its subscribers Time Warner's branded magazines, books, music, and movies. This would have created 130 million subscription relationships.
Unfortunately, the growth and profitability of the AOL division stalled due to advertising and subscriber slowdowns in part caused by the burst of the dot-com bubble
and the economic recession after September 2001. The value of the America Online division dropped significantly, not unlike the market valuation of similar independent internet companies that drastically fell, and forced a goodwill
write-off
, causing AOL Time Warner to report a loss of $99 billion in 2002 — at the time, the largest loss ever reported by a company. The total value of AOL stock subsequently went from $226 billion to about $20 billion.
An outburst by Vice Chairman Ted Turner
at a board meeting prompted Steve Case to contact each of the directors and push for CEO Gerald Levin's ouster. Although Case's coup attempt was rebuffed by Parsons and several other directors, Levin became frustrated with being unable to "regain the rhythm" at the combined company and announce his resignation in the fall of 2001, effective in May 2002. Although Co-COO Bob Pittman was the strongest supporter of Levin and largely seen as the heir-apparent, Dick Parsons was instead chosen as CEO. Time Warner CFO Michael J. Kelly was demoted to COO of the AOL division, and replaced as CFO by Wayne Pace. AOL Chairman and CEO Barry Schuler was removed from his position and placed in charge of a new "content creation division", being replaced on an interim basis by Pittman, who was already serving as the sole COO after Parson's promotion.
Many expected synergies between AOL and other Time Warner divisions never materialized, as most Time Warner divisions were considered independent fiefs that rarely cooperated prior to the merger. A new incentive program that granted options based on the performance of AOL Time Warner, replacing the cash bonuses for the results of their own division, caused resentment among Time Warner division heads who blamed the AOL division for failing to meet expectations and dragging down the combined company. AOL Time Warner COO Pittman, who expected to have the divisions working closely towards convergence instead found heavy resistance from many division executives, who also criticized Pittman for adhering to optimistic growth targets for AOL Time Warner that were never met. Some of the attacks on Pittman were reported to come from the print media in the Time, Inc. division under Don Logan. Furthermore, CEO Parson's democratic style prevented Pittman from exercising authority over the "old-guard" division heads who resisted Pittman's synergy initiatives.
Pittman announced his resignation as AOL Time Warner COO after July 4, 2002, being reportedly burned out by the AOL special assignment and almost hospitalized, unhappy about the criticism from Time Warner executives, and seeing nowhere to move up in firm as Parsons was firmly entrenched as CEO. Pittman's departure was seen as a great victory to Time Warner executives who wanted to undo the merger. In a sign of AOL's diminishing importance to the media conglomerate, Pittman's responsibilities were divided between two Time Warner veterans; Jeffrey Bewkes who was CEO of Home Box Office, and Don Logan who had been CEO of Time. Logan became chairman of the newly created media and communications group, overseeing America Online, Time, Time Warner Cable, the AOL Time Warner Book Group and the Interactive Video unit, relegating AOL to being just another division in the conglomerate. Bewkes became chairman of the entertainment and networks group, comprising HBO, New Line Cinema, The WB, Turner Networks, Warner Bros. and Warner Music. Both Logan and Bewkes, who had initially opposed the merger, were chosen because they were considered the most successful operational executives in the conglomerate and they would report to AOL Time Warner CEO Richard Parsons. Logan, generally admired at Time Warner and reviled by AOL for being a corporate timeserver who stressed incremental steady growth and not much of a risk taker, moved to purge AOL of several "Pittman panzers".
AOL Time Warner Chairman Steve Case took on added prominence as the co-head of a new strategy committee of the board, making speeches to divisions on synergism and the promise of the Internet. However, under pressure from institutional investor vice president Gordon Crawford who lined up dissenters, Case announced in January 2003 that he would not stand for re-election as executive chairman in the upcoming annual meeting, making CEO Richard Parsons the chairman-elect. That year, the company dropped the "AOL" from its name, and spun off Time-Life
's ownership under the legal name Direct Holdings Americas, Inc. Case resigned from the Time Warner board on October 31, 2005.
In 2005, Time Warner was among 53 entities that contributed the maximum of $250,000 to the second inauguration of President George W. Bush
. On December 27, 2007 newly installed Time Warner CEO Jeffrey Bewkes discussed possible plans to spin-off Time Warner Cable
and sell-off AOL and Time Inc. This would leave a smaller company made up of Turner Broadcasting, Warner Bros. and HBO. On February 28, 2008 co-chairmen and co-CEOs of New Line Cinema Bob Shaye and Michael Lynne announced their resignations from the 40-year-old movie studio in response to Jeffrey Bewkes's demand for cost-cutting measures at the studio, which he intended to dissolve into Warner Bros.
On May 28, 2009, Time Warner announced that it would spin off AOL as a separate independent company, with the change occurring on December 9, 2009.
On August 25, 2010, Time Warner's Latin American division bought Chilean nationwide terrestrial television station Chilevisión
from Chile's current president Sebastián Piñera
. Time Warner already operates in the country with CNN Chile
.
and Time Warner announced that they were to create a new broadcast network, The CW Television Network
. The network officially debuted on September 18, 2006. The network formally debuted on September 20 with the 2 hour premiere of America's Next Top Model
.
The network is the result of a merger of The WB Television Network
(a Time Warner holding) and UPN
(a CBS Corporation holding). CBS Corporation and Time Warner each own 50% of the network. Tribune Broadcasting
(previously owned a 25% stake on The WB) and CBS Corporation contributed its stations as new network affiliates, although Time Warner's sole owned TV station (via Turner) Atlanta's WTBS (now WPCH) remains an independent station, competing against CBS-owned CW O&O WUPA
.
division publishes approximately 150 titles worldwide. It is the leading magazine publisher in the U.S. and UK, and is understood to be profitable at US$5 billion in annual revenues. As of January 2007, the unit is experiencing downsizing. In January 2007, the Bonnier Magazine Group agreed to acquire 18 magazines that Time Inc. was divesting. The magazines in the package employed 550 people and included Field & Stream
, Outdoor Life
, Ski, Yachting
, and TransWorld Snowboarding, as well as 11 other titles that were part of Time Inc.'s Time4Media Group. Also included were Parenting
, and Baby Talk
, which were part of the Parenting Group.
For fiscal year 2002 the company reported a $99 billion loss on its income statement
because of $100 billion in non-recurring charges, almost all from a writedown of the goodwill (intangible asset
) from the merger in 2000. This loss is one of the largest in corporate history. The value of the AOL portion of the company had dropped sharply with the collapse of the Internet boom
, in the early 21st century.
On February 4, 2009, Time Warner posted a $16.03 billion loss for the final quarter of 2008, compared with a $1.03 billion profit for the same three months of 2007.
news studio. In late 2003, Time Warner finished construction of a new twin-tower complex, designed to serve as additional office space, facing Columbus Circle
on the southwestern edge of Central Park
. Originally called the AOL Time Warner Center, the 755 feet (230.1 m), 55-floor mixed-use property was renamed Time Warner Center
when the company itself was renamed.
, Chairman and CEO
And six executive vice presidents, most with additional, functional titles:
, CBS Corporation
, Sony
, Viacom
, The Walt Disney Company
, NBC Universal
, and News Corporation
. Time Warner's and many of their competitions business may be severely impacted by the increasing viewership of feature films, television programming and other content online with low ad-income, which decreases company revenues.
Box office receipts have been rising while the growth rate of DVD sales have recently been declining, which affects Warner Bros.' growth prospects and revenues.
Time Warner Center
The Time Warner Center is a mixed-use skyscraper developed by AREA Property Partners and The Related Companies in New York City. Its design, by David Childs of Skidmore, Owings & Merrill, consists of two 750 ft towers bridged by a multi-story atrium containing upscale retail shops...
in New York City. Formerly two separate companies, Warner Communications
Warner Communications
Warner Communications or Warner Communications, Inc. was established in 1971 when Kinney National Company spun off its non-entertainment assets, due to a financial scandal over its parking operations and changed its name....
, Inc. and Time Inc.
Time Inc.
Time Inc. is a subsidiary of the media conglomerate Time Warner, the company formed by the 1990 merger of the original Time Inc. and Warner Communications. It publishes 130 magazines, most notably its namesake, Time...
, (along with the assets of a third company, Turner Broadcasting System
Turner Broadcasting System
Turner Broadcasting System, Inc. is the Time Warner subsidiary managing the collection of cable networks and properties started and acquired by Robert Edward "Ted" Turner starting in the mid-1970s. The company has its headquarters in the CNN Center in Atlanta, Georgia. TBS, Inc...
, Inc.) form the current Time Warner, with major operations in film
Film
A film, also called a movie or motion picture, is a series of still or moving images. It is produced by recording photographic images with cameras, or by creating images using animation techniques or visual effects...
, television
Television
Television is a telecommunication medium for transmitting and receiving moving images that can be monochrome or colored, with accompanying sound...
and publishing
Publishing
Publishing is the process of production and dissemination of literature or information—the activity of making information available to the general public...
. Among its subsidiaries are New Line Cinema
New Line Cinema
New Line Cinema, often simply referred to as New Line, is an American film studio. It was founded in 1967 by Robert Shaye and Michael Lynne as a film distributor, later becoming an independent film studio. It became a subsidiary of Time Warner in 1996 and was merged with larger sister studio Warner...
, Time Inc.
Time Inc.
Time Inc. is a subsidiary of the media conglomerate Time Warner, the company formed by the 1990 merger of the original Time Inc. and Warner Communications. It publishes 130 magazines, most notably its namesake, Time...
, HBO, Turner Broadcasting System
Turner Broadcasting System
Turner Broadcasting System, Inc. is the Time Warner subsidiary managing the collection of cable networks and properties started and acquired by Robert Edward "Ted" Turner starting in the mid-1970s. The company has its headquarters in the CNN Center in Atlanta, Georgia. TBS, Inc...
, The CW Television Network
The CW Television Network
The CW Television Network is a television network in the United States launched at the beginning of the 2006–2007 television season. It is a joint venture between CBS Corporation, the former owners of United Paramount Network , and Time Warner's Warner Bros., former majority owner of The WB...
, TheWB.com, Warner Bros.
Warner Bros.
Warner Bros. Entertainment, Inc., also known as Warner Bros. Pictures or simply Warner Bros. , is an American producer of film and television entertainment.One of the major film studios, it is a subsidiary of Time Warner, with its headquarters in Burbank,...
, Kids' WB
Kids' WB
Kids' WB! was Warner Bros. American childrens programing division brand for The WB Television Network. In September 2006, the block moved to The CW Television Network. The CW is the result of The WB's merger with UPN in 2006...
, Cartoon Network
Cartoon Network
Cartoon Network is a name of television channels worldwide created by Turner Broadcasting which used to primarily show animated programming. The channel began broadcasting on October 1, 1992 in the United States....
, Boomerang
Boomerang (TV channel)
Boomerang is a 24-hour American cable television channel owned by Turner Broadcasting System, a division of Time Warner. Boomerang specializes in reruns of animated programming from Time Warner's extensive archives, including pre-1986 MGM, Hanna-Barbera, Cartoon Network, DePatie-Freleng Enterprises...
, Adult Swim
Adult Swim
Adult Swim is an adult-oriented Cable network that shares channel space with Cartoon Network from 9:00 pm until 6:00 am ET/PT in the United States, and broadcasts in countries such as Australia and New Zealand...
, CNN
CNN
Cable News Network is a U.S. cable news channel founded in 1980 by Ted Turner. Upon its launch, CNN was the first channel to provide 24-hour television news coverage, and the first all-news television channel in the United States...
, DC Comics
DC Comics
DC Comics, Inc. is one of the largest and most successful companies operating in the market for American comic books and related media. It is the publishing unit of DC Entertainment a company of Warner Bros. Entertainment, which itself is owned by Time Warner...
, Hanna-Barbera
Hanna-Barbera
Hanna-Barbera Productions, Inc. was an American animation studio that dominated North American television animation during the second half of the 20th century...
, Cartoon Network Studios
Cartoon Network Studios
Cartoon Network Studios is an American animation studio. A subsidiary of the Turner Broadcasting System , Cartoon Network Studios focuses on producing and developing animated programs only for and related to Cartoon Network...
and Castle Rock Entertainment
Castle Rock Entertainment
Castle Rock Entertainment is a film and television production company founded in 1987 by Martin Shafer, director Rob Reiner, Andrew Scheinman, Glenn Padnick and Alan Horn. It is a subsidiary of Warner Bros...
.
1976
In 1972, Kinney National CompanyKinney National Company
Kinney National Services, Inc. was formed in 1966 when the Kinney Parking Company and the National Cleaning Company merged. The new company was headed by Steve Ross....
spun off its non-entertainment assets due to a financial scandal over its parking operations and renamed itself Warner Communications Inc.
It was the parent company for Warner Bros. Pictures and Warner Music Group
Warner Music Group
Warner Music Group is the third largest business group and family of record labels in the recording industry, making it one of the big four record companies...
during the 1970s and 1980s. It also owned DC Comics
DC Comics
DC Comics, Inc. is one of the largest and most successful companies operating in the market for American comic books and related media. It is the publishing unit of DC Entertainment a company of Warner Bros. Entertainment, which itself is owned by Time Warner...
and Mad, as well as a majority stake in Garden State National Bank
Garden State National Bank
Garden State National Bank was a mid-size commercial bank located in northern New Jersey that enjoyed success in the increasingly wealthy New Jersey suburbs of New York City during the 1970s. The significant media coverage it received during that period was more due to the various M&A transactions...
(an investment it was ultimately required to sell pursuant to requirements under the Bank Holding Company Act
Bank Holding Company Act of 1956
The Bank Holding Company Act of 1956 is a United States Act of Congress that regulates the actions of bank holding companies.The original law , specified that the Federal Reserve Board of Governors must approve the establishment of a bank holding company, and prohibited bank holding companies...
). Warner's initial divestiture efforts led by Garden State CEO Charles A. Agemian
Charles A. Agemian
Charles A. Agemian was a nationally known Armenian-American banker who took early retirement from Chase Manhattan Bank, where he was executive vice president of operations, to become chairman and chief executive officer of the Hackensack Trust Co., which later was renamed Garden State National...
were blocked by Garden State board member William A. Conway
William A. Conway
William A. Conway .William A. Conway was born in Newark, but resided for much of his life in Chatham, New Jersey and Summit, New Jersey.William A...
in 1978; a revised transaction was later completed in 1980.
In 1976, Nolan Bushnell
Nolan Bushnell
Nolan K. Bushnell is an American engineer and entrepreneur who founded both Atari, Inc and the Chuck E. Cheese's Pizza-Time Theaters chain...
sold his Atari company to Warner Communications for an estimated $2–12 million. Warner made considerable profits (and later losses) with Atari
Atari
Atari is a corporate and brand name owned by several entities since its inception in 1972. It is currently owned by Atari Interactive, a wholly owned subsidiary of the French publisher Atari, SA . The original Atari, Inc. was founded in 1972 by Nolan Bushnell and Ted Dabney. It was a pioneer in...
, which it owned from 1976 to 1984. While part of Warner, Atari achieved its greatest success, selling millions of Atari 2600
Atari 2600
The Atari 2600 is a video game console released in October 1977 by Atari, Inc. It is credited with popularizing the use of microprocessor-based hardware and cartridges containing game code, instead of having non-microprocessor dedicated hardware with all games built in...
s and computers. At its peak, Atari accounted for a third of Warner's annual income and was the fastest-growing company in the history of the United States at the time.
In 1975, Warner expanded under the guidance of CEO Steve Ross
Steve Ross (Time-Warner CEO)
Steve Jay Ross was CEO of Time Warner Inc., Warner Communications, and Kinney National Services, Inc.-Early life and career:...
and formed a joint venture with American Express
American Express
American Express Company or AmEx, is an American multinational financial services corporation headquartered in Three World Financial Center, Manhattan, New York City, New York, United States. Founded in 1850, it is one of the 30 components of the Dow Jones Industrial Average. The company is best...
, named Warner-Amex Satellite Entertainment
Warner-Amex Satellite Entertainment
Warner-Amex Satellite Entertainment Company was a joint venture owned and operated by Warner Communications and American Express that developed and worked on interactive television systems in the late 1970s and initiated several successful cable...
, which held cable channels including MTV
MTV
MTV, formerly an initialism of Music Television, is an American network based in New York City that launched on August 1, 1981. The original purpose of the channel was to play music videos guided by on-air hosts known as VJs....
(launched 1981), Nickelodeon
Nickelodeon (TV channel)
Nickelodeon, often simply called Nick and originally named Pinwheel, is an American children's channel owned by MTV Networks, a subsidiary of Viacom International. The channel is primarily aimed at children ages 7–17, with the exception of their weekday morning program block aimed at preschoolers...
(launched 1979) and The Movie Channel
The Movie Channel
The Movie Channel is an American premium channel owned by Showtime Networks, Inc., a subsidiary of CBS Corporation, which shows mostly movies, as well as special behind-the-scenes features, softcore adult erotica and movie trivia....
. Warner bought out American Express's half in 1984, and sold the venture a year later to Viacom, which renamed it MTV Networks
MTV Networks
MTV Networks is a division of media conglomerate Viacom that oversees the operations of many television channels and Internet brands, including the original MTV channel in the United States...
.
1985
In 1980, Warner purchased The Franklin MintFranklin Mint
The Franklin Mint is a private corporation founded by Joseph Segel in 1964. The private mint operated from Wawa, Pennsylvania but that operation has now closed...
for about $225 million. The combination was short lived: Warner sold The Franklin Mint in 1985 to American Protection Industries Inc. (API) for $167.5 million. However, Warner retained Franklin Mint’s Eastern Mountain Sports
Eastern Mountain Sports
Eastern Mountain Sports is an outdoor apparel and equipment retailer in the U.S. Northeast headquartered in Peterborough, New Hampshire.EMS sells outdoor equipment and clothing from both name brands and its own EMS line...
as well as The Franklin Mint Center, which it leased back to API.
In February 1983, Warner expanded their interests to baseball. Under the direction of Caesar P. Kimmel, executive vice president, bought 48 percent of the Pittsburgh Pirates
Pittsburgh Pirates
The Pittsburgh Pirates are a Major League Baseball club based in Pittsburgh, Pennsylvania. They play in the Central Division of the National League, and are five-time World Series Champions...
for $10 million. The company then put up its share for sale in November 1984 following losses of $6 million. The team's elderly majority owner, John W. Galbreath, soon followed suit after learning of Warner's actions.
In 1984, due to the video game crash of 1983
Video game crash of 1983
The North American video game crash was a serious event that brought an abrupt end to what is considered the second generation of console video gaming in North America. Beginning in 1983, the crash almost destroyed the then-fledgling industry and led to the bankruptcy of several companies producing...
, Warner sold the consumer division of Atari
Atari
Atari is a corporate and brand name owned by several entities since its inception in 1972. It is currently owned by Atari Interactive, a wholly owned subsidiary of the French publisher Atari, SA . The original Atari, Inc. was founded in 1972 by Nolan Bushnell and Ted Dabney. It was a pioneer in...
to Jack Tramiel
Jack Tramiel
Jack Tramiel is an American businessman, best known for founding Commodore International - manufacturer of the Commodore PET, Commodore 64, Commodore 128, Commodore Amiga, and other Commodore models of home computers.-Biography:...
. It kept the arcade division and renamed it Atari Games
Atari Games
Atari Games Corporation was an American producer of arcade games, and originally part of Atari, Inc..-History:When, in 1984, Warner Communications sold the Atari Consumer division of Atari Inc...
. They sold Atari Games
Atari Games
Atari Games Corporation was an American producer of arcade games, and originally part of Atari, Inc..-History:When, in 1984, Warner Communications sold the Atari Consumer division of Atari Inc...
to Namco
Namco
is a Japanese corporation best known as a former video game developer and publisher. Following a merger with Bandai in September 2005, the two companies' game production assets were spun off into Namco Bandai Games on March 31, 2006. Namco Ltd. was re-established to continue domestic operation of...
in 1985, and repurchased it in 1994, renaming it Time-Warner Interactive, until it was sold to Midway Games
Midway Games
Midway Games, Inc. is an American company that was formerly a major video game publisher. Following a bankruptcy filing in 2009, it is no longer active and is in the process of liquidating all of its assets. Midway's titles included Mortal Kombat, Ms.Pac-Man, Spy Hunter, Tron, Rampage, the...
in 1996. In a long-expected deal, Warner Communications announced on May 11, 1988 they were acquiring Lorimar-Telepictures
Lorimar-Telepictures
Lorimar-Telepictures was a production and television syndication firm established in 1986 with the merger of Lorimar and Telepictures until both TV divisions became separate in 1988...
; the acquisition was finalized on January 12, 1989.
The merger of Time Inc. and Warner Communications was announced on March 4, 1989. During the summer of that same year, Paramount Communications (formerly Gulf+Western
Gulf+Western
Gulf and Western Industries, Inc., for a number of years known as Gulf+Western, was an American conglomerate.- History :Gulf and Western's prosaic origins date to a manufacturer named Michigan Bumper Co. founded in 1934, though Charles Bluhdorn treated his 1958 takeover of what was then Michigan...
) launched a $12.2 billion hostile bid to acquire Time, Inc. in an attempt to end a stock-swap merger deal between Time and Warner Communications. This caused Time to raise its bid for Warner to $14.9 Billion in cash and stock. Paramount responded by filing a lawsuit in a Delaware court to block the Time/Warner merger. The court ruled twice in favor of Time, forcing Paramount to drop both the Time acquisition and the lawsuit, and allowing the formation of Time Warner which was completed on January 10, 1990.
For employees and shareholders of Warner Communications, particularly Warner CEO Steve Ross, the deal was lopsided in their favor as they were paid cash for their shares. However, many shareholders in Time, Inc. were said to be unhappy about the deal. Henry Luce III, the son of Time Inc.'s founder, remarked "Because of that son of a bitch at Paramount, we had to acquire Warner in cash. That made all of the Warner people rich and all the Time people resentful." Despite it being a bull market, it would take seven and a half years for Time Warner shares to climb to the equivalent of Paramount's $200-a-share offer. Despite all the expected synergies of the Time Warner deal, its stock had never managed to outperform the Standard & Poor's 500 Index.
1990
Time Warner subsequently acquired Ted TurnerTed Turner
Robert Edward "Ted" Turner III is an American media mogul and philanthropist. As a businessman, he is known as founder of the cable news network CNN, the first dedicated 24-hour cable news channel. In addition, he founded WTBS, which pioneered the superstation concept in cable television...
's Turner Broadcasting System
Turner Broadcasting System
Turner Broadcasting System, Inc. is the Time Warner subsidiary managing the collection of cable networks and properties started and acquired by Robert Edward "Ted" Turner starting in the mid-1970s. The company has its headquarters in the CNN Center in Atlanta, Georgia. TBS, Inc...
in October 1996. Not only did this result in the company (in a way) re-entering the basic cable television industry (in regards to nationally available channels), but Warner Bros. also regained the rights to their pre-1950 film library, which by then had been owned by Turner (the films are still technically held by Turner, but WB is responsible for sales and distribution).
Time Warner had also been owner of the Six Flags Theme Parks chain during the 1990s after near bankruptcy. It sold all Six Flags parks and properties to Oklahoma based Premier Parks on April 1, 1998.
Dick Parsons, already a director on the board since 1991, was hired as Time Warner president in 1995, although the division operational heads continued to report directly to Chairman and CEO Gerald Levin.
2000
In 2000, a new company called AOL Time Warner was created when AOLAOL
AOL Inc. is an American global Internet services and media company. AOL is headquartered at 770 Broadway in New York. Founded in 1983 as Control Video Corporation, it has franchised its services to companies in several nations around the world or set up international versions of its services...
purchased Time Warner for US$164 billion. The deal, announced on January 10, 2000 and officially filed on February 11, 2000, employed a merger structure in which each original company merged into a newly created entity. The Federal Trade Commission
Federal Trade Commission
The Federal Trade Commission is an independent agency of the United States government, established in 1914 by the Federal Trade Commission Act...
cleared the deal on December 14, 2000, and gave final approval on January 11, 2001; the company completed the merger later that day. The deal was approved on the same day by the Federal Communications Commission
Federal Communications Commission
The Federal Communications Commission is an independent agency of the United States government, created, Congressional statute , and with the majority of its commissioners appointed by the current President. The FCC works towards six goals in the areas of broadband, competition, the spectrum, the...
, and had already been cleared by the European Commission
European Commission
The European Commission is the executive body of the European Union. The body is responsible for proposing legislation, implementing decisions, upholding the Union's treaties and the general day-to-day running of the Union....
on October 11, 2000. Due to the larger market capitalization of AOL, they would own 55% of the new company while Time Warner shareholders owned only 45%, so in actual practice AOL had acquired Time Warner, even though AOL had far less assets and revenues.
AOL Time Warner, Inc., as the company was then called, was supposed to be a merger of equals with top executives from both sides. Gerald Levin, who had served as CEO of Time Warner, was CEO of the new company. Steve Case
Steve Case
Stephen McConnell "Steve" Case is an American businessman best known as the co-founder and former chief executive officer and chairman of America Online . Since his retirement as chairman of AOL Time Warner in 2003, he has gone on to build a variety of new businesses through his investment...
served as Executive Chairman of the board of directors, Robert W. Pittman
Robert W. Pittman
Robert Warren "Bob" Pittman , is an American businessman and the founder of MTV. On October 2, 2011, Pittman was named CEO of Clear Channel Media Holdings, Inc.. Pittman has also been the CEO of MTV Networks, AOL, Six Flags Theme Parks, Quantum Media, Century 21 Real Estate and Time Warner...
(President and COO of AOL) and Dick Parsons (President of Time Warner) served as Co-Chief Operating Officer
Chief operating officer
A Chief Operating Officer or Director of Operations can be one of the highest-ranking executives in an organization and comprises part of the "C-Suite"...
s, and J. Michael Kelly (the CFO from AOL) became the Chief Financial Officer
Chief financial officer
The chief financial officer or Chief financial and operating officer is a corporate officer primarily responsible for managing the financial risks of the corporation. This officer is also responsible for financial planning and record-keeping, as well as financial reporting to higher management...
.
According to AOL President and COO Bob Pittman, the slow-moving Time Warner would now take off at Internet speed, accelerated by AOL: "All you need to do is put a catalyst to [Time Warner], and in a short period, you can alter the growth rate. The growth rate will be like an Internet company." When the AOL Time Warner deal was announced, the vision for its future seemed clear and straightforward; by tapping into AOL, Time Warner would reach deep into the homes of tens of millions of new customers. AOL would use Time Warner's high-speed cable lines to deliver to its subscribers Time Warner's branded magazines, books, music, and movies. This would have created 130 million subscription relationships.
Unfortunately, the growth and profitability of the AOL division stalled due to advertising and subscriber slowdowns in part caused by the burst of the dot-com bubble
Dot-com bubble
The dot-com bubble was a speculative bubble covering roughly 1995–2000 during which stock markets in industrialized nations saw their equity value rise rapidly from growth in the more...
and the economic recession after September 2001. The value of the America Online division dropped significantly, not unlike the market valuation of similar independent internet companies that drastically fell, and forced a goodwill
Goodwill (accounting)
Goodwill is an accounting concept meaning the value of an entity over and above the value of its assets. The term was originally used in accounting to express the intangible but quantifiable "prudent value" of an ongoing business beyond its assets, resulting perhaps because the reputation the firm...
write-off
Write-off
The term write-off describes a reduction in recognized value. In accounting terminology, it refers to recognition of the reduced or zero value of an asset. In income tax statements, it refers to a reduction of taxable income as recognition of certain expenses required to produce the income...
, causing AOL Time Warner to report a loss of $99 billion in 2002 — at the time, the largest loss ever reported by a company. The total value of AOL stock subsequently went from $226 billion to about $20 billion.
An outburst by Vice Chairman Ted Turner
Ted Turner
Robert Edward "Ted" Turner III is an American media mogul and philanthropist. As a businessman, he is known as founder of the cable news network CNN, the first dedicated 24-hour cable news channel. In addition, he founded WTBS, which pioneered the superstation concept in cable television...
at a board meeting prompted Steve Case to contact each of the directors and push for CEO Gerald Levin's ouster. Although Case's coup attempt was rebuffed by Parsons and several other directors, Levin became frustrated with being unable to "regain the rhythm" at the combined company and announce his resignation in the fall of 2001, effective in May 2002. Although Co-COO Bob Pittman was the strongest supporter of Levin and largely seen as the heir-apparent, Dick Parsons was instead chosen as CEO. Time Warner CFO Michael J. Kelly was demoted to COO of the AOL division, and replaced as CFO by Wayne Pace. AOL Chairman and CEO Barry Schuler was removed from his position and placed in charge of a new "content creation division", being replaced on an interim basis by Pittman, who was already serving as the sole COO after Parson's promotion.
Many expected synergies between AOL and other Time Warner divisions never materialized, as most Time Warner divisions were considered independent fiefs that rarely cooperated prior to the merger. A new incentive program that granted options based on the performance of AOL Time Warner, replacing the cash bonuses for the results of their own division, caused resentment among Time Warner division heads who blamed the AOL division for failing to meet expectations and dragging down the combined company. AOL Time Warner COO Pittman, who expected to have the divisions working closely towards convergence instead found heavy resistance from many division executives, who also criticized Pittman for adhering to optimistic growth targets for AOL Time Warner that were never met. Some of the attacks on Pittman were reported to come from the print media in the Time, Inc. division under Don Logan. Furthermore, CEO Parson's democratic style prevented Pittman from exercising authority over the "old-guard" division heads who resisted Pittman's synergy initiatives.
Pittman announced his resignation as AOL Time Warner COO after July 4, 2002, being reportedly burned out by the AOL special assignment and almost hospitalized, unhappy about the criticism from Time Warner executives, and seeing nowhere to move up in firm as Parsons was firmly entrenched as CEO. Pittman's departure was seen as a great victory to Time Warner executives who wanted to undo the merger. In a sign of AOL's diminishing importance to the media conglomerate, Pittman's responsibilities were divided between two Time Warner veterans; Jeffrey Bewkes who was CEO of Home Box Office, and Don Logan who had been CEO of Time. Logan became chairman of the newly created media and communications group, overseeing America Online, Time, Time Warner Cable, the AOL Time Warner Book Group and the Interactive Video unit, relegating AOL to being just another division in the conglomerate. Bewkes became chairman of the entertainment and networks group, comprising HBO, New Line Cinema, The WB, Turner Networks, Warner Bros. and Warner Music. Both Logan and Bewkes, who had initially opposed the merger, were chosen because they were considered the most successful operational executives in the conglomerate and they would report to AOL Time Warner CEO Richard Parsons. Logan, generally admired at Time Warner and reviled by AOL for being a corporate timeserver who stressed incremental steady growth and not much of a risk taker, moved to purge AOL of several "Pittman panzers".
AOL Time Warner Chairman Steve Case took on added prominence as the co-head of a new strategy committee of the board, making speeches to divisions on synergism and the promise of the Internet. However, under pressure from institutional investor vice president Gordon Crawford who lined up dissenters, Case announced in January 2003 that he would not stand for re-election as executive chairman in the upcoming annual meeting, making CEO Richard Parsons the chairman-elect. That year, the company dropped the "AOL" from its name, and spun off Time-Life
Time-Life
Time–Life is a creator and direct marketer of books, music, video/DVD, and multimedia products. Its products are sold throughout North America, Europe, Australia, and Asia through television, print, retail, the Internet, telemarketing, and direct sales....
's ownership under the legal name Direct Holdings Americas, Inc. Case resigned from the Time Warner board on October 31, 2005.
In 2005, Time Warner was among 53 entities that contributed the maximum of $250,000 to the second inauguration of President George W. Bush
George W. Bush
George Walker Bush is an American politician who served as the 43rd President of the United States, from 2001 to 2009. Before that, he was the 46th Governor of Texas, having served from 1995 to 2000....
. On December 27, 2007 newly installed Time Warner CEO Jeffrey Bewkes discussed possible plans to spin-off Time Warner Cable
Time Warner Cable
Time Warner Cable is an American cable television company that operates in 28 states and has 31 operating divisions...
and sell-off AOL and Time Inc. This would leave a smaller company made up of Turner Broadcasting, Warner Bros. and HBO. On February 28, 2008 co-chairmen and co-CEOs of New Line Cinema Bob Shaye and Michael Lynne announced their resignations from the 40-year-old movie studio in response to Jeffrey Bewkes's demand for cost-cutting measures at the studio, which he intended to dissolve into Warner Bros.
On May 28, 2009, Time Warner announced that it would spin off AOL as a separate independent company, with the change occurring on December 9, 2009.
On August 25, 2010, Time Warner's Latin American division bought Chilean nationwide terrestrial television station Chilevisión
Chilevisión
CHV, also known as Chilevisión, is the third oldest television station in Chile. Formerly called Teleonce and RTU , this TV station was owned by University of Chile, a Chilean state university...
from Chile's current president Sebastián Piñera
Sebastián Piñera
Miguel Juan Sebastián Piñera Echenique is a Chilean businessman and politician. He was elected President of Chile in January 2010, taking office in March 2010.- Education :...
. Time Warner already operates in the country with CNN Chile
CNN Chile
CNN Chile is a Chilean 24-hour television news channel launched on December 4, 2008. It is a joint venture between VTR Chile, a Liberty Global subsidiary, and Turner Broadcasting, a unit of Time Warner...
.
Transactions made since the AOL-Time Warner merger
Since the merger, a number of transactions have taken place:- World Championship WrestlingWorld Championship WrestlingWorld Championship Wrestling, Inc. was an American professional wrestling promotion which existed from 1988 to 2001. Based in Atlanta, Georgia, it began as a regional promotion affiliated with the National Wrestling Alliance , named Jim Crockett Promotions until November 1988, when Ted Turner and...
was sold to WWF EntertainmentWorld Wrestling EntertainmentWorld Wrestling Entertainment, Inc. is an American publicly traded, privately controlled entertainment company dealing primarily in professional wrestling, with major revenue sources also coming from film, music, product licensing, and direct product sales...
on March 23, 2001 after Jamie KellnerJamie KellnerJamie Kellner is an American television executive. He was chairman and chief executive officer of Turner Broadcasting System, Inc., a division of Time Warner which includes TBS, TNT, and Cartoon Network. Kellner took over the post in 2001 and handed over the company to Philip Kent in 2003...
of TBS decided that wrestling was not in the network's best interest. - After William HannaWilliam HannaWilliam Denby Hanna was an American animator, director, producer, and cartoon artist, whose film and television cartoon characters entertained millions of people for much of the 20th century. When he was a young child, Hanna's family moved frequently, but they settled in Compton, California, by...
's death in March 2001, Hanna-BarberaHanna-BarberaHanna-Barbera Productions, Inc. was an American animation studio that dominated North American television animation during the second half of the 20th century...
was absorbed to Warner Bros. AnimationWarner Bros. AnimationWarner Bros. Animation is the animation division of Warner Bros., a subsidiary of Time Warner. The studio is closely associated with the Looney Tunes and Merrie Melodies characters, among others. The studio is the successor to Warner Bros...
. - The Atlanta HawksAtlanta HawksThe Atlanta Hawks are an American professional basketball team based in Atlanta, Georgia. They are part of the Southeast Division of the Eastern Conference in the National Basketball Association .-The first years:...
, Atlanta ThrashersAtlanta ThrashersThe Atlanta Thrashers were a professional ice hockey team based in Atlanta, Georgia, United States. Atlanta was granted a franchise in the National Hockey League on June 25, 1997, and became the league's 28th franchise when it began play in the 1999–2000 NHL season...
, and operating rights to Philips ArenaPhilips ArenaPhilips Arena is an indoor arena in Atlanta, Georgia.Completed in 1999 to replace The Omni, at a cost of $213.5 million, it is home to the Atlanta Hawks, of the National Basketball Association, and the Atlanta Dream, of the Women's National Basketball Association...
were sold in mid-2003. - The fifty percent share in the cable channel Comedy CentralComedy CentralComedy Central is an American cable television and satellite television channel that carries comedy programming, both original and syndicated....
was sold to Viacom. - Warner Music GroupWarner Music GroupWarner Music Group is the third largest business group and family of record labels in the recording industry, making it one of the big four record companies...
was sold to a group of investors led by Edgar Bronfman Jr. in March 2004. - AOL/Netscape's longrunning litigation against MicrosoftMicrosoftMicrosoft Corporation is an American public multinational corporation headquartered in Redmond, Washington, USA that develops, manufactures, licenses, and supports a wide range of products and services predominantly related to computing through its various product divisions...
was settled out of court. - Time Warner announced that it was shutting down its CNNfnCNNfnCNNfn was a U.S. cable television news network operated by the CNN subsidiary of the media comglomerate Time Warner from December 29, 1995 and of AOL-Time Warner until December 15, 2004. The network was dedicated to covering financial markets and business news.It was available in a number of...
financial information channel and disposing of its share in GoogleGoogleGoogle Inc. is an American multinational public corporation invested in Internet search, cloud computing, and advertising technologies. Google hosts and develops a number of Internet-based services and products, and generates profit primarily from advertising through its AdWords program...
(2004). - On March 31, 2006 Time Warner sold the Time Warner Book Group to French publisher Hachette LivreHachette Livre-France:*Calmann-Lévy*Deux Coqs d'Or*Disney Hachette Edition*EDICEF*Editions 1*Editions du Chêne**E.P.A*Éditions Dunod*Editions Foucher*Editions Stock*Fayard**Editions Mille et Une Nuits**Editions Mazarine**Pauvert*Gautier-Languereau*Grasset...
, of the LagardereLagardèreLagardère may refer to:* Lagardère Group* Jean-Luc Lagardère* Arnaud Lagardère* Lagardère, a commune of the Gers département, in France...
group. - On February 7, 2006, a group led by corporate raider Carl IcahnCarl IcahnCarl Celian Icahn is an American business magnate and investor.-Biography:Icahn was raised in Far Rockaway, Queens, New York City, where he attended Far Rockaway High School. His father was a cantor, his mother was a schoolteacher...
and Lazard Frères CEO Bruce WassersteinBruce WassersteinBruce Jay Wasserstein was an American investment banker and businessman. He was a graduate of the McBurney School, University of Michigan, Harvard Business School, and Harvard Law School, and spent a year at Cambridge University...
unveiled a 343-page proposal calling for the breakup of Time Warner into four companies and stock buybacks totaling approximately $20 billion. On February 17, 2006, the Icahn-lead group agreed with Time Warner to not contest the re-election of TW's slate of board members at the 2006 shareholders meeting. In exchange for the Icahn group's cooperation, Time Warner will buy back up to $20 billion of stock, nominate more independent members to the board of directors, cut $1 billion of costs by 2007, and continue discussions with the Icahn group over their proposal, particularly on the future of Time Warner Cable. - On February 23, 2006, Turner SouthTurner SouthTurner South was an American cable television network launched on October 1, 1999 by Turner Broadcasting System as the first regional entertainment network developed especially for viewers in the southern United States...
, a regional sports and entertainment network in the south, was sold to News Corp's Fox Cable Networks group. The network later became SportSouthSportSouthSportSouth is a regional sports network in the United States, with its headquarters in Atlanta, Georgia. SportSouth, formerly Turner South, relaunched on October 13, 2006...
. - On September 12, 2006, Time Inc. announced that Time4 Media, a group of men's interest magazines including Popular SciencePopular SciencePopular Science is an American monthly magazine founded in 1872 carrying articles for the general reader on science and technology subjects. Popular Science has won over 58 awards, including the ASME awards for its journalistic excellence in both 2003 and 2004...
and Outdoor LifeOutdoor LifeOutdoor Life is an outdoors magazine about hunting, fishing, survival and camping. It is a sister magazine of Field & Stream. Together with Sports Afield, they are considered the Big Three of American outdoor publishing. Outdoor Life launched in Denver, Colorado in January 1898. Founder and...
was to be put up for sale. The sale included 18 publications (including three parenting-related titles), with the eventual buyer being the Bonnier Magazine Group. - In the fall of 2006, the Atlanta BravesAtlanta BravesThe Atlanta Braves are a professional baseball club based in Atlanta, Georgia. The Braves are a member of the Eastern Division of Major League Baseball's National League. The Braves have played in Turner Field since 1997....
were sold to Liberty MediaLiberty MediaLiberty Media Corporation is an American media conglomerate and the control is exercised by company Chairman John C. Malone, who owns a majority of the voting shares....
in a deal that returned vast amounts of Liberty-owned Time Warner stock back into the company's folds. This sale was made official on May 17, 2007. - In the summer of 2008, the Reader's Digest AssociationThe Reader's Digest AssociationThe Reader's Digest Association, Inc. is a global media and direct marketing company, best known for its flagship publication founded in 1922, Reader's Digest...
sold QSP to Time Warner subsidiary Time Inc.Time Inc.Time Inc. is a subsidiary of the media conglomerate Time Warner, the company formed by the 1990 merger of the original Time Inc. and Warner Communications. It publishes 130 magazines, most notably its namesake, Time...
for $110 million. - In March 2009, Time Warner CableTime Warner CableTime Warner Cable is an American cable television company that operates in 28 states and has 31 operating divisions...
was divested from the company in a spin-out. - On August 26, 2010, in ChileChileChile ,officially the Republic of Chile , is a country in South America occupying a long, narrow coastal strip between the Andes mountains to the east and the Pacific Ocean to the west. It borders Peru to the north, Bolivia to the northeast, Argentina to the east, and the Drake Passage in the far...
, Time Warner Company took the full control of ChilevisiónChilevisiónCHV, also known as Chilevisión, is the third oldest television station in Chile. Formerly called Teleonce and RTU , this TV station was owned by University of Chile, a Chilean state university...
, a channel owned by Chile's President Sebastian PiñeraSebastián PiñeraMiguel Juan Sebastián Piñera Echenique is a Chilean businessman and politician. He was elected President of Chile in January 2010, taking office in March 2010.- Education :...
.
The CW Television Network
On January 24, 2006, CBS CorporationCBS
CBS Broadcasting Inc. is a major US commercial broadcasting television network, which started as a radio network. The name is derived from the initials of the network's former name, Columbia Broadcasting System. The network is sometimes referred to as the "Eye Network" in reference to the shape of...
and Time Warner announced that they were to create a new broadcast network, The CW Television Network
The CW Television Network
The CW Television Network is a television network in the United States launched at the beginning of the 2006–2007 television season. It is a joint venture between CBS Corporation, the former owners of United Paramount Network , and Time Warner's Warner Bros., former majority owner of The WB...
. The network officially debuted on September 18, 2006. The network formally debuted on September 20 with the 2 hour premiere of America's Next Top Model
America's Next Top Model
America's Next Top Model is a reality television show in which a number of women compete for the title of America's Next Top Model and a chance to start their career in the modeling industry....
.
The network is the result of a merger of The WB Television Network
The WB Television Network
The WB Television Network is a former television network in the United States that was launched on January 11, 1995 as a joint venture between Warner Bros. and Tribune Broadcasting. On January 24, 2006, CBS Corporation and Warner Bros...
(a Time Warner holding) and UPN
UPN
United Paramount Network was a television network that was broadcast in over 200 markets in the United States from 1995 to 2006. UPN was originally owned by Viacom/Paramount and Chris-Craft Industries, the former of which, through the Paramount Television Group, produced most of the network's...
(a CBS Corporation holding). CBS Corporation and Time Warner each own 50% of the network. Tribune Broadcasting
Tribune Broadcasting
The Tribune Broadcasting Company is a group of radio and television stations located throughout the United States which are owned and operated by the Tribune Company, a media conglomerate based in Chicago, Illinois and named for the flagship Chicago Tribune newspaper.- History :Tribune Broadcasting...
(previously owned a 25% stake on The WB) and CBS Corporation contributed its stations as new network affiliates, although Time Warner's sole owned TV station (via Turner) Atlanta's WTBS (now WPCH) remains an independent station, competing against CBS-owned CW O&O WUPA
WUPA
WUPA, channel 69, is a television station in Atlanta, Georgia. An owned and operated station of the The CW Television Network, it identifies itself as "CW 69". It is owned by CBS Corporation, which is half-owner of The CW. Founded November 10, 1980, the station is broadcast locally in...
.
Time Inc.
The Time Inc.Time Inc.
Time Inc. is a subsidiary of the media conglomerate Time Warner, the company formed by the 1990 merger of the original Time Inc. and Warner Communications. It publishes 130 magazines, most notably its namesake, Time...
division publishes approximately 150 titles worldwide. It is the leading magazine publisher in the U.S. and UK, and is understood to be profitable at US$5 billion in annual revenues. As of January 2007, the unit is experiencing downsizing. In January 2007, the Bonnier Magazine Group agreed to acquire 18 magazines that Time Inc. was divesting. The magazines in the package employed 550 people and included Field & Stream
Field & Stream
Field & Stream is a magazine featuring hunting, fishing, and other outdoor activities in the United States. Together with Sports Afield and Outdoor Life, it is considered one of the Big Three of American outdoor publishing....
, Outdoor Life
Outdoor Life
Outdoor Life is an outdoors magazine about hunting, fishing, survival and camping. It is a sister magazine of Field & Stream. Together with Sports Afield, they are considered the Big Three of American outdoor publishing. Outdoor Life launched in Denver, Colorado in January 1898. Founder and...
, Ski, Yachting
Yachting (magazine)
Yachting is a monthly English-language magazine published since 1907. It was founded by Oswald Garrison Villard, publisher of the New York Evening Post and the Nation. The next year Herbert L. Stone became the manager. In 1938 Stone and some friends bought the magazine.It features articles on...
, and TransWorld Snowboarding, as well as 11 other titles that were part of Time Inc.'s Time4Media Group. Also included were Parenting
Parenting (magazine)
Launched in 1987 by Time Inc., Parenting is a magazine for families published in the United States. In February 2009, the magazine became two separate, age-targeted editions: Parenting Early Years, for moms of infants, toddlers and preschoolers; and Parenting School Years, for moms with kids in...
, and Baby Talk
Babytalk (magazine)
Babytalk, America's oldest baby magazine, was launched in 1935 as a supplement to customers of a national cloth diaper delivery service based in New Jersey. The free monthly publication aims to help new mothers trust their maternal instincts with "straight talk" from experts and real moms...
, which were part of the Parenting Group.
Financials
When the AOL-Time Warner merger was announced in January 2000, the combined market capitalization was $350 billion. It has subsequently fallen dramatically. Even by the time the merger was approved by the FCC and FTC just one year later on February 11, 2001, the company's market capitalization had plunged to $208.6 billion. By 2009, the company's value had tumbled even further, to just $65.7 billion, or roughly one-sixth of its value at the height of the dot.com bubble era when the deal was announced.Time Warner 2009 Annual ReportFor fiscal year 2002 the company reported a $99 billion loss on its income statement
Income statement
Income statement is a company's financial statement that indicates how the revenue Income statement (also referred to as profit and loss statement (P&L), statement of financial performance, earnings statement, operating statement or statement of operations) is a company's financial statement that...
because of $100 billion in non-recurring charges, almost all from a writedown of the goodwill (intangible asset
Intangible asset
Intangible assets are defined as identifiable non-monetary assets that cannot be seen, touched or physically measured, which are created through time and/or effort and that are identifiable as a separate asset...
) from the merger in 2000. This loss is one of the largest in corporate history. The value of the AOL portion of the company had dropped sharply with the collapse of the Internet boom
Dot-com bubble
The dot-com bubble was a speculative bubble covering roughly 1995–2000 during which stock markets in industrialized nations saw their equity value rise rapidly from growth in the more...
, in the early 21st century.
On February 4, 2009, Time Warner posted a $16.03 billion loss for the final quarter of 2008, compared with a $1.03 billion profit for the same three months of 2007.
Commercial properties
Time Warner Inc. owns several large properties in New York City; certain buildings in the Rockefeller Center complex and adjacent office towers house its main offices; one of which houses a CNNCNN
Cable News Network is a U.S. cable news channel founded in 1980 by Ted Turner. Upon its launch, CNN was the first channel to provide 24-hour television news coverage, and the first all-news television channel in the United States...
news studio. In late 2003, Time Warner finished construction of a new twin-tower complex, designed to serve as additional office space, facing Columbus Circle
Columbus Circle
Columbus Circle, named for Christopher Columbus, is a major landmark and point of attraction in the New York City borough of Manhattan, located at the intersection of Eighth Avenue, Broadway, Central Park South , and Central Park West, at the southwest corner of Central Park. It is the point from...
on the southwestern edge of Central Park
Central Park
Central Park is a public park in the center of Manhattan in New York City, United States. The park initially opened in 1857, on of city-owned land. In 1858, Frederick Law Olmsted and Calvert Vaux won a design competition to improve and expand the park with a plan they entitled the Greensward Plan...
. Originally called the AOL Time Warner Center, the 755 feet (230.1 m), 55-floor mixed-use property was renamed Time Warner Center
Time Warner Center
The Time Warner Center is a mixed-use skyscraper developed by AREA Property Partners and The Related Companies in New York City. Its design, by David Childs of Skidmore, Owings & Merrill, consists of two 750 ft towers bridged by a multi-story atrium containing upscale retail shops...
when the company itself was renamed.
Board of directors
As of June 24, 2010.- Jeffrey L. Bewkes - Chairman and Chief Executive Officer, Time Warner Inc.
- James Barksdale - Chairman and President, Barksdale Management Corporation
- William P. Barr - Former Attorney General of the United States
- Stephen F. Bollenbach - Former Co-Chairman and Chief Executive Officer, Hilton Hotels CorporationHilton Hotels CorporationHilton Worldwide is a global hospitality company. It is owned by the Blackstone Group, a private equity firm. As of July 2011 Hilton brands encompass 3,750 hotels with over 600,000 rooms in 84 countries...
- Frank J. CaufieldFrank J. CaufieldFrank J. Caufield is best known as a co-founder of the venture capital firm Kleiner Perkins Caufield & Byers, based in Menlo Park, California....
- Co-Founder and Partner, Kleiner Perkins Caufield & Byers - Robert C. ClarkRobert C. ClarkRobert C. Clark is currently Harvard University Distinguished Service Professor of the Harvard Law School. He previously served as Dean and Professor of Law at Harvard Law School from 1989 to 2003. Clark is recognized as a leading authority in corporate law and corporate governance.-Career:Clark...
- Distinguished Service Professor, Harvard UniversityHarvard UniversityHarvard University is a private Ivy League university located in Cambridge, Massachusetts, United States, established in 1636 by the Massachusetts legislature. Harvard is the oldest institution of higher learning in the United States and the first corporation chartered in the country... - Mathias DöpfnerMathias DöpfnerMathias Döpfner , is Chief Executive Officer of German media group Axel Springer AG.-Family:Mathias Döpfner grew up in Offenbach am Main. His mother was a housewife and his father Dieter C...
- Chairman, Chief Executive Officer, Axel Springer AGAxel Springer AGAxel Springer AG is one of the largest multimedia companies in Europe, with more than 11,500 employees and with annual revenues of about €2.9 billion. The Company is active in a total of 36 countries, including Hungary, Poland, the Czech Republic, Russia and Germany, France, Spain, Switzerland... - Jessica P. Einhorn - Dean, Paul H. Nitze School of Advanced International Studies (SAIS), Johns Hopkins UniversityJohns Hopkins UniversityThe Johns Hopkins University, commonly referred to as Johns Hopkins, JHU, or simply Hopkins, is a private research university based in Baltimore, Maryland, United States...
- Fred HassanFred HassanFred Hassan , a native of Pakistan, who was the Chairman of the Board and Chief Executive Officer of pharmaceutical company Schering-Plough from 2003 until November 3, 2009 when the company completed its merger with Merck & Co.....
- Former Chairman and Chief Executive Officer, Schering-Plough Corporation - Michael A. MilesMichael A. MilesMichael A. Miles serves on the board of directors of Time Warner, Sears Holdings Corporation, Dell Inc., AMR Corporation, and Citadel Broadcasting Corporation. Previously he was the chief executive officer of Kraft Foods and Philip Morris Companies. He became a Special Limited Partner of Forstmann...
- Special Limited Partner, Forstmann Little & CompanyForstmann Little & CompanyForstmann, Little & Company is a private equity firm, specializing in leveraged buyouts . At its peak in the late 1990s, Forstmann Little was among the largest private equity firms globally... - Ken NovackKen NovackKen Novack, a graduate of Dartmouth College and Harvard Law School, is an American lawyer who currently sits on the board of BBN Technologies and is a special advisor to General Catalyst Partners. From 1998 until 2003 he served as Vice Chairman for America Online and then Time-Warner after the two...
- Senior Counsel, Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, PC - Deborah WrightDeborah WrightDeborah C. Wright is President and CEO of Carver Bancorp, the holding company for Carver Federal Savings Bank. This is the U.S.'s largest publicly traded African-American operated bank, with locations in Brooklyn, Manhattan and Queens...
- Chairman and Chief Executive Officer, Carver BancorpCarver BancorpCarver Bancorp, Inc. is the holding company of Carver Federal Savings Bank. It is a public company, and notable for being the only black-managed bank on NASDAQ and one of only 11 black-managed publicly traded companies, making it the largest black-owned financial institution in the United...
, Inc.
Time Warner Inc.
Jeffrey L. BewkesJeffrey Bewkes
Jeffrey Lawrence Bewkes is an American media executive. He has served as CEO of Time Warner since January 1, 2008 and as President since December 2005. On January 1, 2009 he became Chairman of the Board in addition to his other duties....
, Chairman and CEO
Chief executive officer
A chief executive officer , managing director , Executive Director for non-profit organizations, or chief executive is the highest-ranking corporate officer or administrator in charge of total management of an organization...
And six executive vice presidents, most with additional, functional titles:
- Paul T. Cappuccio, General CounselGeneral CounselA general counsel is the chief lawyer of a legal department, usually in a corporation or government department. The term is most used in the United States...
- Patricia Fili-Krushel, Administration
- Gary L. GinsbergGary GinsbergGary Ginsberg is a lawyer, American political operative and corporate adviser who worked as a lawyer in the Clinton White House. After time at George and eleven years at News Corporation, he is currently at Time Warner.- Biography :...
, Corporate MarketingMarketingMarketing is the process used to determine what products or services may be of interest to customers, and the strategy to use in sales, communications and business development. It generates the strategy that underlies sales techniques, business communication, and business developments...
and Communications - John K. Martin, Chief Financial OfficerChief financial officerThe chief financial officer or Chief financial and operating officer is a corporate officer primarily responsible for managing the financial risks of the corporation. This officer is also responsible for financial planning and record-keeping, as well as financial reporting to higher management...
- Carol A. Melton, Global Public Policy
- Olaf Olafsson
Subsidiaries
- Bill Nelson, Chairman and CEO of Home Box Office
- Ann S. MooreAnn S. MooreAnn S. Moore was the Chairman and Chief Executive Officer of Time Inc. until the fall of 2010. She became the company's first female CEO when she was appointed to the position in July 2002.-Biography:...
, Chairman and CEO of Time Inc.Time Inc.Time Inc. is a subsidiary of the media conglomerate Time Warner, the company formed by the 1990 merger of the original Time Inc. and Warner Communications. It publishes 130 magazines, most notably its namesake, Time... - John Huey, Editor-In-Chief of Time Inc.Time Inc.Time Inc. is a subsidiary of the media conglomerate Time Warner, the company formed by the 1990 merger of the original Time Inc. and Warner Communications. It publishes 130 magazines, most notably its namesake, Time...
- Philip I. Kent, Chairman and CEO of Turner Broadcasting SystemTurner Broadcasting SystemTurner Broadcasting System, Inc. is the Time Warner subsidiary managing the collection of cable networks and properties started and acquired by Robert Edward "Ted" Turner starting in the mid-1970s. The company has its headquarters in the CNN Center in Atlanta, Georgia. TBS, Inc...
- Barry MeyerBarry MeyerBarry Meyer is an American television producer, currently Chairman and CEO of Warner Bros. Entertainment.-Early life:Born in New York City Meyer holds a bachelor’s degree from the University of Rochester and a law degree from Case Western Reserve University School of Law...
, Chairman and CEO of Warner Bros. Entertainment Inc.Warner Bros.Warner Bros. Entertainment, Inc., also known as Warner Bros. Pictures or simply Warner Bros. , is an American producer of film and television entertainment.One of the major film studios, it is a subsidiary of Time Warner, with its headquarters in Burbank,... - Alan F. HornAlan F. HornAlan F. Horn is the President & COO of Warner Bros. Entertainment. Horn also sits on the board of directors of Univision.Prior to Warner Bros., Horn served in various positions at 20th Century Fox and at Norman Lear's television production company, Tandem Productions...
, PresidentPresidentA president is a leader of an organization, company, trade union, university, or country.Etymologically, a president is one who presides, who sits in leadership...
and Chief Operating OfficerChief operating officerA Chief Operating Officer or Director of Operations can be one of the highest-ranking executives in an organization and comprises part of the "C-Suite"...
of Warner Bros. Entertainment Inc.Warner Bros.Warner Bros. Entertainment, Inc., also known as Warner Bros. Pictures or simply Warner Bros. , is an American producer of film and television entertainment.One of the major film studios, it is a subsidiary of Time Warner, with its headquarters in Burbank,...
Competition
Time Warner faces industry competition from traditional media companies such as VivendiVivendi
Vivendi SA is a French international media conglomerate with activities in music, television and film, publishing, telecommunications, the Internet, and video games. It is headquartered in Paris.- History :...
, CBS Corporation
CBS Corporation
CBS Corporation is an American media conglomerate focused on commercial broadcasting, publishing, billboards and television production, with most of its operations in the United States. The President and CEO of the company is Leslie Moonves. Sumner Redstone, owner of National Amusements, is CBS's...
, Sony
Sony
, commonly referred to as Sony, is a Japanese multinational conglomerate corporation headquartered in Minato, Tokyo, Japan and the world's fifth largest media conglomerate measured by revenues....
, Viacom
Viacom
Viacom Inc. , short for "Video & Audio Communications", is an American media conglomerate with interests primarily in, but not limited to, cinema and cable television...
, The Walt Disney Company
The Walt Disney Company
The Walt Disney Company is the largest media conglomerate in the world in terms of revenue. Founded on October 16, 1923, by Walt and Roy Disney as the Disney Brothers Cartoon Studio, Walt Disney Productions established itself as a leader in the American animation industry before diversifying into...
, NBC Universal
NBC Universal
NBCUniversal Media, LLC is a media and entertainment company engaged in the production and marketing of entertainment, news, and information products and services to a global customer base...
, and News Corporation
News Corporation
News Corporation or News Corp. is an American multinational media conglomerate. It is the world's second-largest media conglomerate as of 2011 in terms of revenue, and the world's third largest in entertainment as of 2009, although the BBC remains the world's largest broadcaster...
. Time Warner's and many of their competitions business may be severely impacted by the increasing viewership of feature films, television programming and other content online with low ad-income, which decreases company revenues.
Box office receipts have been rising while the growth rate of DVD sales have recently been declining, which affects Warner Bros.' growth prospects and revenues.
Past names
- Time Inc. (1922–1990)
- Warner Bros. Pictures Inc. (1923–1967)
- Seven Arts Productions Inc. (1957–1967)
- Kinney National Company (1966–1971)
- Warner Bros.-Seven Arts (1967–1971)
- Warner Communications (1971–1990)
- Time Warner (1990–2001, November 2002–present)
- Time Warner Entertainment (1992–2001)
- AOL Time Warner Inc. (2000–2003)
See also
- Time-LifeTime-LifeTime–Life is a creator and direct marketer of books, music, video/DVD, and multimedia products. Its products are sold throughout North America, Europe, Australia, and Asia through television, print, retail, the Internet, telemarketing, and direct sales....
- former direct marketing (books, music, video) subsidiary; - Ted TurnerTed TurnerRobert Edward "Ted" Turner III is an American media mogul and philanthropist. As a businessman, he is known as founder of the cable news network CNN, the first dedicated 24-hour cable news channel. In addition, he founded WTBS, which pioneered the superstation concept in cable television...
- Steve CaseSteve CaseStephen McConnell "Steve" Case is an American businessman best known as the co-founder and former chief executive officer and chairman of America Online . Since his retirement as chairman of AOL Time Warner in 2003, he has gone on to build a variety of new businesses through his investment...
- Reel Works Teen Filmmaking - a documentary youth program sponsored by Time Warner
External links
- A complete list of Time Warner media facilities and a detailed report on their campaign contributions and lobbying from the Center for Public IntegrityCenter for Public IntegrityThe Center for Public Integrity is a nonprofit organization dedicated to producing original, responsible investigative journalism on issues of public concern. The Center is non-partisan and non-advocacy and committed to transparent and comprehensive reporting both in the United States and around...
- Ketupa - Time Warner profile
- Columbia Journal Review's Who Owns What for Time Warner
- Early analysis of the Time Warner-AOL merger
- Yahoo! - Time Warner Inc. Company Profile
- Time Warner's most recent conference call transcripts