AOL / TIME / WARNER to break up (1 Viewer)

[John Berggren]

Reports are coming out that AOL Time Warner will be broken into 3 independent companies, essentially an acknowledgement that the merger didn't work.

The three companies will be:

AOL

Time

Warner Brothers

So not only no more AOL Time Warner, but no Time Warner any longer either.

It'll be interesting to see how this effects WB DVD output.

Moderators: I thought about after hours for this topic, but I felt it was relevant to software.

 

[Brook K]

Interesting, I wonder if Ted Turner will be able to regain control of any of his former properties. I know the Braves could benefit if this were the case. Go get Thome!

 

[CaptDS9E]

I actually think it will be better for each company that they are seperate. AOL/Time Warner merger made things bad for all of there business's. AOL's stock and customer base dropped. They sold WCW to the WWE, they pretty much cut off more money from there baseball team the braves, and a lot of other tiny things.

Brook Thome isnt going to the braves. He dosnt want to be traded

capt

 

[Brian McHale]

I would be very surprised if this actually happened. As a stockholder, I do pay attention to how AOL/Time-Warner does, and I haven't come across anything that makes me think they'll split the company up.

 

[Joshua Clinard]

Brian,

AOL Time Warner chief Richard Parsons "is setting up to disaggregate the company.

Link Removed
If they do split up, AOL should take Ivy Hill as it's subsidiary, instead of Warner.

 

[Jesse Skeen]

Will this require all existing copies of the movie "You've Got Mail" to be destroyed?

 

[GrantM]

I share your enthusiasm Brook, AOL's treatment of the Braves made them even more evil in my eyes. Give them back to Turner so they can actually spend money!!!!

 

[Scott DeToffol]

"Analysts are predicting..." isn't even a rumor. It's a rumor of a rumor.

If it comes about, this would be one of the biggest business stories of the year - on par with Worldcom and the bear market.

 

[JJR512]

AOL Time Warner, AT&T, Comcast in Talks About Restructuring TWE
AFX News Limited
AOL Time Warner Inc is in intensive talks with AT&T and Comcast Corp about the future of AT&T Corp's 25 pct stake in Time Warner Entertainment, the unit including Warner Brothers and the HBO television channel, the Financial Times reported, citing Richard Parsons, chief executive of AOL Time Warner.
Parsons said that finalising a new structure of TWE was one of his main priorities as he overhauls the debt-burdened media group.
Speaking outside a media conference in Idaho, Parsons said: "We are actively engaged with AT&T and Comcast to resolve [unwinding TWE]."
He declined to comment on mounting speculation about AOL Time Warner's management structure or the future of Robert Pittman, chief operating officer of the group, the FT said.

From Infobeat

 

[John Berggren]

I honestly think such a break would be best for all companies involved. The worst off would be AOL, but I think they may hold their own once they focus on their core business again: providing the worst available internet service to the largest number of people.

 

[Michael Reuben]

John, I appreciate the Software connection, but this discussion really does belong in After Hours.

M.

 

[Paul W]

I wonder where New Line will end up?

 

[Mike Voigt]

For those of you who might have read the book Good to Great - think of it this way: what is the core competency, the "hedgehog" of the current conglomerate?

I think they're better off separate.

Mike

 

[Rob T]

I hope Warner Bros gets DC comics and not AOL. Ivy Hill would be good for AOL though.

 

[Steve_Tk]

Maybe they will not make Snapper cases anymore
We can dream.....

 

[AviTevet]

I think they're better off together. They are the only company in position to solve the DRM issue that all the other RIAA/MPAA companies are pitching a fit about. They have a media arm and a digital distribution arm. What is bad about that? Not saying I think they could come up with an ethical solution, but at least one that would stop the RIAA from legislating our rights away and that would be really really easy to hack. I personally wouldn't ever pay for AOL because their product sucks, but nonetheless they still have a unique position.

AOL/TW is much more than just dial-up and movies. They own Netscape, Winamp, AOL IM & ICQ, and of course something like 200 different publications. If you ask me they've been horribly mismanaged. While the world's been turning they've been adding flower graphics to ICQ, emoticons to IM, and skins to Winamp. That's equivalent to this multi-billion dollar corporation saying "What the world really needs from us right now is software with more graphics. If we could just stuff more graphics in our software, we could really be improving people's lives." Put the right manager in there and they'd be quite a company.

 

[John Berggren]

Warner will get DC Comics. DC Comics makes a fair profit, but exists partly as a development studio. WB wants to be able to mine DC properties for television and movies.