Aol Time Warner Case Analysis
Case Issues
1. Top Management- How will having a new CEO and CFO affect Time Warner?
2. Financial Position- AOL is putting a strain on Time Warner 's Financials.
3. Human Resources- How will the Writers Guild Strike affect Time Warner?
I. Current Situation
Time Warner Inc. is a leader in the media and entertainment industry. Its businesses include interactive services, cable systems, film entertainment, television networks and publishing. Its individual businesses are AOL, Time Warner Cable, HBO, Turner Broadcasting System, New Line Cinema, Warner Bros Entertainment, and Time, Inc.
A. Current Performance
Last year Time Warner, Inc delivered an impressive year. In 2006 Time Warner generated $44.224 billion which is an increase of 4% from 2005.Their operating income in 2006 before Depreciation and Amortization was $10.941 billion, a 54% increase from 2005. They had an operating Income of $7.362 billion up 85% from 2005. Time Warner 's net income was $6.552 billion a 145% increase from 2005. Cash provided by operations was $8.598 billion a 76% increase from2 005. The results for 2006 and 2005 reflect the effects of pretax charges of $650 million and $3 billion, respectively, related to securities litigation as discussed further in "Recent Developments."
B. Strategic Posture
Mission:
"We thrive on innovation and originality, encouraging risk-taking and divergent voices."
"We value our customers, putting their needs and interests at the center of everything we do."
"We move quickly, embracing change and seizing new opportunities."
"We treat one another with respectcreating value by working together within and across our businesses."
"We rigorously uphold editorial independence and artistic expression, earning the trust of our readers, viewers, listeners, members and subscribers."
"We attract and develop the world 's best talent, seeking to include the broadest range of people and perspectives."
"We work to improve our
1. Top Management- How will having a new CEO and CFO affect Time Warner?
2. Financial Position- AOL is putting a strain on Time Warner 's Financials.
3. Human Resources- How will the Writers Guild Strike affect Time Warner?
I. Current Situation
Time Warner Inc. is a leader in the media and entertainment industry. Its businesses include interactive services, cable systems, film entertainment, television networks and publishing. Its individual businesses are AOL, Time Warner Cable, HBO, Turner Broadcasting System, New Line Cinema, Warner Bros Entertainment, and Time, Inc.
A. Current Performance
Last year Time Warner, Inc delivered an impressive year. In 2006 Time Warner generated $44.224 billion which is an increase of 4% from 2005.Their operating income in 2006 before Depreciation and Amortization was $10.941 billion, a 54% increase from 2005. They had an operating Income of $7.362 billion up 85% from 2005. Time Warner 's net income was $6.552 billion a 145% increase from 2005. Cash provided by operations was $8.598 billion a 76% increase from2 005. The results for 2006 and 2005 reflect the effects of pretax charges of $650 million and $3 billion, respectively, related to securities litigation as discussed further in "Recent Developments."
B. Strategic Posture
Mission:
"We thrive on innovation and originality, encouraging risk-taking and divergent voices."
"We value our customers, putting their needs and interests at the center of everything we do."
"We move quickly, embracing change and seizing new opportunities."
"We treat one another with respectcreating value by working together within and across our businesses."
"We rigorously uphold editorial independence and artistic expression, earning the trust of our readers, viewers, listeners, members and subscribers."
"We attract and develop the world 's best talent, seeking to include the broadest range of people and perspectives."
"We work to improve our