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Bewkes Replaces Parsons at Time Warner

By SETH SUTEL,

Posted: 2007-11-05 16:29:52

NEW YORK (Nov. 5) - Dick Parsons will depart as CEO of Time Warner Inc. at the end of the year, five years after taking the helm of the world's largest media conglomerate and rebuilding its stature following a disastrous merger with AOL.

HBO / AP

Dick Parsons, left, and Jeff Bewkes, right.

Parsons, who is 59, will be replaced on Jan. 1 by the 55-year-old Jeff Bewkes, a former head of HBO who is currently the company's chief operating officer, Time Warner said Monday. Parsons will stay on as chairman.

The CEO changeover had been widely expected. Parsons' contract runs through next May, but Bewkes has been groomed as Parsons' successor for the past several years.

Investors will be looking to the company's third-quarter earnings announcement and conference call on Wednesday for clues about Bewkes' plans for leading the company.

Parsons, one of the most prominent black executives in corporate America, has spent much of his tenure repairing the damage from Time Warner's agreement in 2000 to be acquired by the pioneering Internet company AOL.

The grand synergies promised by the deal never materialized, and the company later faced, and settled, shareholder lawsuits and federal investigations stemming from shady accounting practices at AOL.

Parsons did much to regain the faith of Wall Street, and successfully fended off a challenge from the activist investor Carl Icahn in 2006 to break up the company.

He pared the company's debt and sold off several businesses, including Warner Music Group and a book publishing business, to clarify and streamline the company's structure, which had been criticized as unwieldy.

However investors remain frustrated that the company's stock is still stuck at around the same level as it was five years ago, when Parsons took the helm.

Expectations will now focus on Bewkes, a highly regarded and energetic executive who helped build HBO into a premier media brand, to take action to reinvigorate the stock.

Shortly after the official announcement of Bewkes' appointment, the company's shares were up 21 cents at $18.09.

Copyright 2008 The Associated Press. The information contained in the AP news report may not be published, broadcast, rewritten or otherwise distributed without the prior written authority of The Associated Press. All active hyperlinks have been inserted by AOL.

2007-11-05 14:20:46

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11 comments

Ljmasco 03:14:00 PM Nov 07 2007

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Parsons was a fair ceo

Sjc1959911 01:57:00 PM Nov 07 2007

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I wonder how many millions Parsons will get in his golden parachute?
What a disaster! I sold my TWX for the tax loss and I'm glad I did!

dolpcane 06:22:34 AM Nov 06 2007

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PARSONS IS A CLOWN, YOU WOULDNT LET A 5 YEAR OLD DRIVE A CAR, WHY WOULD ANYONE LET THIS INCOMPETENT BUFFONE RUN A FORTUNE 500 COMPANY????

IN THE WORDS OF THE IMMORTAL "JIM CRAMER" "BUY BUY BUY"!!!!!!!!!!!!!!!!!

dolpcane 06:22:30 AM Nov 06 2007

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Philschellenger 01:08:05 AM Nov 06 2007

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the stock is a loser,either way.

pea921 10:18:57 PM Nov 05 2007

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Let's hope the stocks go somewhere other than down!!!!!

pea921 10:18:53 PM Nov 05 2007

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Let's hope the stocks go somewhere other than down!!!!!

skugged 09:46:00 PM Nov 05 2007

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Who in the hell has a clue about the motion picure business here on AOL? And why, if they thought there were a decent analyst, he sure as hell would not be making the money AOL pays.
All people on AOL know is news about Britney Spears, the cartoons that are hits, and do not even know what the capitol of their states are.
You put on anything to avoid the negative news about BUSH and the impeachment initiative which is going to be logged in tomorrow............

skugged 09:45:00 PM Nov 05 2007

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