Time Warner May Start Buyback and Parsons May Step Back

LONDON, June 8: Time
Warner’s chairman and CEO Richard
Parsons said during an investor conference that the company is
considering a renewed stock buyback plan and that he may shed his CEO title,
handing it over to Time Warner’s president and COO, Jeff
Bewkes.

Time Warner, which
recently tapped out a buyback plan worth $20 billion, soon may have funds for a
new repurchase plan as the media giant reduces its debt to its target levels.

Speaking at a Merrill
Lynch media investor conference, Parsons pointed out that the company is
looking to make more acquisitions, particularly in the online space to expand
AOL. Time Warner Cable could also grow through acquisitions, or be split into
an independent company. He also dispelled rumors regarding the sale of the
magazine unit, Time Inc.

Parsons’ contract is up
next year, but before stepping down he has three main priorities: ensuring a
sustainable future for AOL, which changed its business model last year into an
advertising-supported portal, completing Time Warner Cable's integration of
Adelphia assets, and solidifying the online strategies for the magazine unit,
Time Inc.

Parsons gave Bewkes a full
endorsement as his heir apparent, but emphasized that the Time Warner board has
final say regarding the succession.