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Google Exec Now AOL Chief
Excerpt from the InvestorGuide.com Stock of the Day on 3/13/2009

Google (GOOG: Charts, News, Offers) Senior Vice President, Tim Armstrong, will be taking over the reins at AOL. He will be replacing Randy Falco, the ex-Chairman and ex-CEO of that division. Currently, analysts are viewing this move favorably because Mr. Armstrong is credited with taking Google's advertising revenues to where they are today. He was also with the search giant through its good and bad times, almost since the beginning. Furthermore, he has solid experience in the industry and a solid reputation on Madison Avenue. At one point in time, analysts even believed he would become the CEO of Yahoo (YHOO: Charts, News, Offers). However, now that he is a part of Time Warner as the head of AOL, what kinds of hurdles will he have to tackle?

For one, the division has been seeing continued declines in revenue. In 2008, its total revenue fell 20 percent to $4.2 billion. This is nothing new, what with the fact that they have been experiencing lower revenues for a few years now. With Mr. Armstrong at the helm however, there is renewed hope that he can raise cash inflows despite the economic recession. Though no specific strategy has been mention as to how he plans to achieve growth and change, there is reason to believe he will try to modify AOL's corporate culture to spur innovation. The current environment is one where innovative ideas are few. Perhaps this is due to Time Warner's business as a media conglomerate. In that industry, the type of innovation which would benefit AOL the most is different from what would benefit the company as a whole. More >


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Time Warner Plans to Cut Cable
Excerpt from the InvestorGuide.com Stock of the Day on 4/30/2008

The old adage, "Less is more," is not Time Warner's company motto. The media conglomerate, which happens to be the world's largest, has taken a bold move to simplify its overall business structure and announced plans today to officially part ways with its Time Warner Cable division. The news comes alongside a disappointing first-quarter earnings statement which fell below analyst expectations. This strategy shift is not the first, nor the last, for Chief Executive Jeffrey Bewkes in his plan to shake things up at Time Warner. With Time Warner Cable getting the axe, which division will be on the chopping block next? More >

Time Warner Profits Slump 53%; New CEO on Horizon
Excerpt from the InvestorGuide.com Stock of the Day on 11/7/2007

It would not be fair to say that Time Warner has fallen on hard times. For that phrase to be used a company would have to have fallen into a sudden slump. This has simply not been the case for Time Warner: the company hasn't seen growth in years (nearly 7, to be precise). Compared to media companies like News Corp. (NWS: Charts, News, Offers), or even online advertisers like Google (GOOG: Charts, News, Offers), the New York-based company has not been the golden child of the stock market. Yes, the company did negotiate the disastrous merger with AOL, but one has to hope that something will come up on the horizon that will turn things around. For now that hope rests on incoming CEO Jeff Bewkes. More >

Time Warner Finds AOL at the Cross-Roads
Excerpt from the InvestorGuide.com Stock of the Day on 7/12/2006

A merger is like a marriage, when you enter one; you agree to take on the other person's problems. Never has that been truer than in the case of the AOL and Time Warner merger. So almost six years after it agreed to be bought out by a much smaller company (whose value was temporarily inflated by the dot com bubble) Time Warner finds itself again in the unenviable position of trying to extricate AOL from its path towards irrelevance. Reportedly, AOL executives have come up with their wildest idea yet and that includes offering its services for free to some members. The company hopes that the shortfall in subscription revenue can be made up by serving more ads. In a country where innovation is what sets one apart, can AOL be successful by going down a road that may others have already taken? More >

Ted Turner Leaving Time Warner Board   2/24/2006

Billionaire investor mulling tender for a 10% stake   8/31/2005

AOL Plans to Restructure; 3 Executives Out   11/9/2004

Time Warner (TWX) Upgrades

Date
Analyst
Old Rating
New Rating
09/10/2009
Goldman Sachs
Neutral
Buy
12/01/2008
Sanford C. Bernstein
Market Perform
Outperform
02/12/2008
UBS
Neutral
Buy
07/16/2007
Pali Research
Neutral
Buy
12/11/2006
Prudential Equity
Overweight
Neutral Weight
10/12/2006
Merrill Lynch
Buy
Neutral

Time Warner (TWX) Downgrades

Date
Analyst
Old Rating
New Rating
09/03/2008
Sanford Bernstein
Outperform
Market Perform
07/07/2008
Lehman Brothers
Overweight
Equal Weight
09/06/2007
Pali Research
Buy
Neutral
09/28/2006
J.P. Morgan
Neutral
Overweight

Time Warner (TWX) New Coverage

Date
Analyst
Rating
08/20/2009
Caris & Co
Above Average
06/13/2008
Stanford Group
Buy
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