STD – XB GROUP - 16

PRESENTED BY- TEJASHREE WAJE MAYURI THAKOR

INTRODUCTION 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.NYSETWXmass mediaTime Warner CenterWarner CommunicationsTime Inc.filmtelevisionpublishingNew Line CinemaTime Inc.HBOTurner Broadcasting SystemThe CW Television NetworkTheWB.comWarner Bros.Kids' WBCartoon NetworkBoomerangAdult SwimCNNDC ComicsWarner Bros. AnimationCartoon Network StudiosCastle Rock EntertainmentTime Warner CableAOL

HISTORY In 1972, Kinney National Company spun off its non- entertainment assets due to a financial scandal over its parking operations and renamed itself Warner Communications Inc. In 1972, Kinney National Company spun off its non- entertainment assets due to a financial scandal over its parking operations and renamed itself Warner Communications Inc.Kinney National CompanyKinney National Company 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. 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.Steve RossAmerican ExpressWarner-Amex Satellite EntertainmentMTVNickelodeonThe Movie ChannelViacomMTV NetworksSteve RossAmerican ExpressWarner-Amex Satellite EntertainmentMTVNickelodeonThe Movie ChannelViacomMTV Networks

Jeff Bewkes Steve Case Steve Ross

Time Warner subsequently acquired Ted Turner's Turner Broadcasting System in October 1996 Time Warner subsequently acquired Ted Turner's Turner Broadcasting System in October 1996Ted Turner Broadcasting SystemTed Turner Broadcasting System 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, 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.Six Flags Theme ParksSix Flags Theme Parks 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. 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.

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

FINANCIAL CONDITION 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. 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.

PROBLEMS FACED BY THE COMPANY For fiscal year 2002 the company reported a $99 billion loss on its i i i i i nnnn cccc oooo mmmm eeee s s s s tttt aaaa tttt eeee mmmm eeee nnnn tttt because of $100 billion in non-recurring charges, almost all from a writedown of the goodwill ( iiii nnnn tttt aaaa nnnn gggg iiii bbbb llll eeee a a a a ssss ssss eeee tttt) from the merger in This loss is one of the l l l l l aaaa rrrr gggg eeee ssss tttt i i i i nnnn cccc oooo rrrr pppp oooo rrrr aaaa tttt eeee h h h h iiii ssss tttt oooo rrrr yyyy. The value of the AOL portion of the company had dropped sharply with the c c c c c oooo llll llll aaaa pppp ssss eeee o o o o ffff tttt hhhh eeee I I I I nnnn tttt eeee rrrr nnnn eeee tttt b b b b oooo oooo mmmm, 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

COMPETITORS Time Warner faces industry competition from traditional media companies such as Vivendi, CBS Corporation, Sony, Viacom, The Walt Disney Company, NBCUniversal, 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.37 Time Warner faces industry competition from traditional media companies such as Vivendi, CBS Corporation, Sony, Viacom, The Walt Disney Company, NBCUniversal, 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.37VivendiCBS CorporationSony ViacomThe Walt Disney CompanyNBCUniversal News Corporation37VivendiCBS CorporationSony ViacomThe Walt Disney CompanyNBCUniversal News Corporation37 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. 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.