Refit complete
The write-down of $45.4 billion in value of America Online and the departure of Ted Turner marks the end of the transition at AOL Time Warner. Just as the Time Inc. and Warner Bros. merger ended with a complete housecleaning and reorientation of business efforts, this is the final chapter. Turner's leaving indicates that the resulting company is settling in on a business model, one not bold enough for Turner. Remember, Steve Case is still on the board and heading the strategy committee. It's a nice balance.
Revenue was up seven percent to $41.1 billion and earnings were up before the write-down of AOL's value. The revenue figure is a substantial gain over the $36 billion they generated separately before the merger. AOL accounted for increased revenues. This is the proverbial corner in this story, but the stock will be down tomorrow.
Posted by Mitch Ratcliffe at January 29, 2003 07:59 PM | TrackBack