TIME WARNER, INC'

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TIME WARNER, INC.

• By Baruch Lundy
• Advanced Accounting Information Systems

2
Overview

• Corporate History Background Information
• Employees
• Mission Statement
• Major Products
• Managements Discussion Analysis (10K)
• Time Warners Financials
• The Future

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Corporate History Background Information

• The merger of Time Inc., and Warner Commutations
  in 1990 formed Time Warner
• Turner Broadcasting System merged with Time
  Warner in 1996
• Time Warner, Inc. became an entity with the
  merger of American Online (AOL), Inc. and Time
  Warner on January 11, 2001

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Employees

• As of March 2, 2004, the businesses of Time
  Warner, Inc (TWI). employed a total of
  approximately 80,000 persons

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Mission Statement

• To become the worlds most respected and valued
  company by connecting, informing and entertaining
  people everywhere in innovative ways that will
  enrich their lives.

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Major Products

• Previously six different fundamental areas (1)
  AOL, (2) Cable, (3) Filmed Entertainment, (4)
  Networks, (5) Publishing, and (6) Music
• Now, 5 areas, TWIs entire Music division
  recently was sold

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AOL

• AOL primarily consists of electronic commerce
  services, web properties, Internet technologies,
  and interactive services
• AOL has 30.6 million subscribers and is the
  world leader in interactive services.
• The division generated 8.6 billion in total
  revenue, which represented 21 of TWIs total
  revenue

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Cable

• Cable portion of TWI contains properties in cable
  television systems that provide video programming
  and high speed data services
• Time Warner Cable is the second largest cable
  operator in the U.S.
• Time Warner Cable had revenues of 7.69 billion
  in 2003, which represented 19 of TWIs total
  revenue

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Filmed Entertainment

• Produces and distributes television, movies,
  animation, and other programming
• Consists of Warner Bros. Entertainment and New
  Line Cinema
• Generated revenues of 10.967 billion, which
  represented 26 of TWIs overall revenue for 2003

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Networks

• Properties in broadcast network programming and
  cable television
• Includes the cable networks TBS, CNN, Headline
  News, HBO, Cinemax, and the WB broadcast network
• The Networks division had revenues of 8.434
  billion, which represented 20 of TWIs total
  revenue

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Publishing

• Includes book publishing and magazine publishing
• Generated revenues of 5.533 billion, which
  represented 14 of TWIs total revenue
• Over 130 magazine titles, including Time and
  People

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Managements Discussion Analysis (10K)

• Major event of 2003 was the complete sale of
  TWIs entire Music division
• Sold its direct marketing business, Time Life, to
  Direct Holdings Worldwide LLC
• TWI had a net income for the first time since its
  merger with AOL in 2001, with an income of 2,639
  billion

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Time Warners FinancialsBalance Sheet
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Time Warners FinancialsIncome Statement
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Time Warners FinancialsCash Flow Statement
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The Future

• In five years, Time Warner will lower its debt
  and further right itself
• Looking to expand its cable operations
• Future is bright