STD – XBGROUP -16

PRESENTED BY- TEJASHREE WAJE MAYURI THAKOR

INTRODUCTIONINTRODUCTION Time Warner Inc. (NYSE: TWX), (formerly AOL Time

Warner) is one of the world's largestmass media corporations with headquarters in the Time Warner Center in New York City.Formerly two separate companies, Warner Communications, Inc. and Time 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, Warner Bros. Animation, Cartoon Network Studios and Castle Rock Entertainment. The company used to also have telecommunications assets through Time Warner Cable andAOL, but in 2009, they were spun off from Time Warner into independent companies.

HISTORYHISTORY In 1972, In 1972, Kinney National CompanyKinney National Company spun off its spun off its

non-entertainment assets due to a financial non-entertainment assets due to a financial scandal over its parking operations and renamed scandal over its parking operations and renamed itself Warner Communications Inc.itself Warner Communications Inc.

In 1975, Warner expanded under the guidance of In 1975, Warner expanded under the guidance of CEO CEO Steve RossSteve Ross and formed a joint venture with and formed a joint venture with American ExpressAmerican Express, named , named Warner-Amex Satellite EntertainmentWarner-Amex Satellite Entertainment, which held , which held cable channels including cable channels including MTVMTV (launched 1981), (launched 1981), NickelodeonNickelodeon (launched 1979) and (launched 1979) and The Movie ChannelThe Movie Channel. Warner bought out American . Warner bought out American Express's half in 1984, and sold the venture a year Express's half in 1984, and sold the venture a year later to later to ViacomViacom, which renamed it , which renamed it MTV NetworksMTV Networks..

Jeff Bewkes Steve Case

Steve Ross

Time Warner subsequently acquired Time Warner subsequently acquired Ted TurnerTed Turner's 's Turner Broadcasting SystemTurner Broadcasting System in October 1996 in October 1996

Time Warner had also been owner of the Time Warner had also been owner of the Six Flags Theme ParksSix Flags Theme Parks chain during the 1990s chain during the 1990s after near bankruptcy. It sold all Six Flags parks after near bankruptcy. It sold all Six Flags parks and properties to Oklahoma based Premier and properties to Oklahoma based Premier Parks on April 1, 1998.Parks on April 1, 1998.

Dick Parsons, already a director on the board Dick Parsons, already a director on the board since 1991, was hired as Time Warner since 1991, was hired as Time Warner president in 1995, although the division president in 1995, although the division operational heads continued to report directly operational heads continued to report directly to Chairman and CEO Gerald Levinto Chairman and CEO Gerald Levin..

The CW Television NetworkThe CW Television Network

On January 24, 2006, On January 24, 2006, CBS CorporationCBS Corporation and Time Warner announced that and Time Warner announced that they were to create a new broadcast they were to create a new broadcast network, network, The CW Television NetworkThe CW Television Network. . The network officially debuted on The network officially debuted on September 18, 2006. The network September 18, 2006. The network formally debuted on September 20 formally debuted on September 20 with the 2 hour premiere of with the 2 hour premiere of America's Next Top ModelAmerica's Next Top Model..

FINANCIAL CONDITIONFINANCIAL CONDITION

When the AOL-Time Warner merger was When the AOL-Time Warner merger was announced in January 2000, the combined announced in January 2000, the combined market capitalization was $350 billion. It has market capitalization was $350 billion. It has subsequently fallen dramatically. Even by the subsequently fallen dramatically. Even by the time the merger was approved by the FCC time the merger was approved by the FCC and FTC just one year later on February 11, and FTC just one year later on February 11, 2001, the company's market capitalization 2001, the company's market capitalization had plunged to $208.6 billion. By 2009, the had plunged to $208.6 billion. By 2009, the company's value had tumbled even further, company's value had tumbled even further, to just $65.7 billion, or roughly one-sixth of its to just $65.7 billion, or roughly one-sixth of its value at the height of the dot.com bubble era value at the height of the dot.com bubble era when the deal was announced.when the deal was announced.

PROBLEMS FACED BY THE PROBLEMS FACED BY THE COMPANYCOMPANY

For fiscal year 2002 the company reported a For fiscal year 2002 the company reported a $99 billion loss on its income statement 33 $99 billion loss on its income statement 33 because of $100 billion in non-recurring because of $100 billion in non-recurring charges, almost all from a writedown of the charges, almost all from a writedown of the goodwill (intangible asset) from the merger in goodwill (intangible asset) from the merger in 2000. This loss is one of the largest in 2000. This loss is one of the largest in corporate history. The value of the AOL corporate history. The value of the AOL portion of the company had dropped sharply portion of the company had dropped sharply with the collapse of the Internet boom, in the with the collapse of the Internet boom, in the early 21st century.early 21st century.

On February 4, 2009, Time Warner posted a On February 4, 2009, Time Warner posted a $16.03 billion loss for the final quarter of $16.03 billion loss for the final quarter of 2008, compared with a $1.03 billion profit for 2008, compared with a $1.03 billion profit for the same three months of 2007the same three months of 2007

COMPETITORSCOMPETITORS Time Warner faces industry competition from Time Warner faces industry competition from

traditional media companies such as traditional media companies such as VivendiVivendi, , CBS CorporationCBS Corporation, , SonySony, , ViacomViacom, , The Walt Disney CompanyThe Walt Disney Company, , NBCUniversalNBCUniversal, and , and News CorporationNews Corporation. Time Warner's and many of . Time Warner's and many of their competitions business may be severely their competitions business may be severely impacted by the increasing viewership of feature impacted by the increasing viewership of feature films, television programming and other content films, television programming and other content online with low ad-income, which decreases online with low ad-income, which decreases company revenues.37company revenues.37

Box office receipts have been rising while the Box office receipts have been rising while the growth rate of DVD sales have recently been growth rate of DVD sales have recently been declining, which affects Warner Bros.' growth declining, which affects Warner Bros.' growth prospects and revenues.prospects and revenues.