Monday, June 1, 2009

Should Time Warner Sell Itself?

Interesting opinion speculating Time Warner's next move, post AOL spin off. Now that the cable distribution and AOL businesses are spun off, what is next. It seems though that spinning off the cable networks makes little sense although it is delivered as one such option. "Option 3: Which brings us to Mr. Bewkes’s third, and possibly most attractive option. To sell the company to the likes of, say, Comcast, or News Corp. " His rationale, "though Time Warner operates a number of solid businesses, from Turner Broadcasting to Warner Bros. and HBO, none hold growth potential." And yet NBC and others see their cable networks as growth opportunities and solid business ventures. Is the Time Warner business over and done? Is Chief Executive Jeff Bewkes clueless on how to run these businesses? Has the merger of Time, Inc. and Warner Brothers been a huge missed opportunity?

I believe that Time Warner can save itself and should not consider option 3, a sell to another company. It is the home for great content in multiple forms, print, TV, film, and terrific cable networks in the basic and premium space. If content is king, then maintaining its hold on content is essential. Consumers continue to seek out great content and have shown that they are willing to pay for it too. The business does not need to stagnate; Time Warner simply need to build a new strategy and direction to take them to the next level. It can be done.