Time Warner

Time Warner
source
Name	Time Warner
Type	Public company
Industry	Mass media
Fate	Acquired by AT&T
Predecessor	Time Inc., Warner Communications
Founded	10 February 1990
Founder	Steve Ross, J. Richard Munro
Defunct	15 June 2018
Location	New York City, New York, U.S.
Key people	Jeffrey L. Bewkes (CEO), Gerald M. Levin
Products	Cable television, Film production, Television production
Subsid	Warner Bros., HBO, Turner Broadcasting System

Time Warner was a major American multinational mass media and entertainment conglomerate, formed from the merger of Time Inc. and Warner Communications in 1990. It was one of the world's largest media companies, with vast holdings in film, television, and cable television programming and distribution. The company's history was marked by significant acquisitions, such as Turner Broadcasting System, and a transformative merger with internet provider AOL in 2000. Its operations were ultimately divided and sold, culminating in its acquisition by AT&T in 2018.

History

The company originated from the 1990 merger between the venerable publishing giant Time Inc., publisher of *Time* and *Fortune*, and the entertainment powerhouse Warner Communications, home to Warner Bros. and a major record label. This created a formidable vertically integrated media entity. In 1996, under CEO Gerald M. Levin, it acquired Ted Turner's Turner Broadcasting System, bringing assets like CNN, TBS, and Cartoon Network under its umbrella. The most defining and disastrous event was the 2000 merger with AOL, valued at $165 billion, which aimed to combine old and new media but faltered after the dot-com bubble burst. The merged AOL Time Warner struggled, leading to the removal of "AOL" from its name in 2003 and the eventual spin-off of AOL in 2009.

Corporate structure

Following the AOL spin-off, Time Warner was reorganized under CEO Jeffrey L. Bewkes into three primary, publicly reportable segments. These were Turner Broadcasting System, encompassing its cable network portfolio; Home Box Office, which included the premium channel HBO and its production arms; and Warner Bros., its expansive film and television studio division. The company's corporate headquarters were located at the Time Warner Center in New York City. Its board of directors included prominent figures from business and media, and it was a component of the S&P 500 and Dow Jones Industrial Average indices for many years.

Major divisions and assets

The Warner Bros. division was a Hollywood leader, producing blockbuster films like the *Harry Potter* franchise and operating major television production units for networks like The CW. The Turner Broadcasting System unit owned a suite of leading cable television networks, including the news leader CNN, entertainment channels TBS and TNT, and animation-focused networks like Cartoon Network and Adult Swim. Home Box Office was renowned for its premium subscription service and groundbreaking original programming such as The Sopranos and Game of Thrones. The company also held significant interests in theme parks and global licensing through Warner Bros. Consumer Products.

Financial performance

Time Warner was consistently one of the highest-revenue media companies globally, with annual revenues often exceeding $25 billion in its later years. Its most profitable segments were typically its cable network operations, particularly HBO and the domestic Turner Broadcasting System networks, which generated substantial affiliate fees and advertising income. The Warner Bros. studio's performance was cyclical, dependent on the box office success of its annual slate of films. The company paid a regular dividend to shareholders and engaged in significant stock buyback programs under Bewkes's leadership to return capital.

Controversies and legal issues

The company faced numerous challenges, including a major accounting scandal at AOL that led to investigations by the Securities and Exchange Commission and the U.S. Department of Justice. It also encountered public and regulatory criticism, such as the backlash over CNN's retracted story about Operation Tailwind and debates over media consolidation. Legal battles included disputes with shareholders over the AOL Time Warner merger's value destruction and various antitrust examinations of its dominant market position in cable news and programming.

Merger with AT&T and legacy

In October 2016, Time Warner agreed to be acquired by telecommunications giant AT&T in a deal valued at $85.4 billion. The merger faced intense regulatory scrutiny and a lawsuit from the U.S. Department of Justice on antitrust grounds, but was ultimately approved in 2018. Upon completion, Time Warner was renamed WarnerMedia and later merged with Discovery, Inc. to form Warner Bros. Discovery. Its legacy is that of a defining media titan of the late 20th and early 21st centuries, whose assets and brands, from Batman to CNN, continue to shape the global entertainment landscape under new corporate structures.

Category:Mass media companies of the United States Category:Companies based in New York City Category:Defunct mass media companies