Time Warner- America On-Line’s ownership structure consists of the Board of Directors, Senior Corporate Executives, and Senior Corporate Officers. It is the largest Internet company in the world. America-On Line aims to shape the Internet Age through providing outstanding services as a provider, partner, and a corporate citizen. The company believes that social responsibility is a very integral part of their mission. They aim to provide the highest quality products and services and to act with integrity, and contribute to the common good.
The company’s corporate life and culture stresses on promoting n ethic of volunteerism and civic engagement. MISSION: To become the world’s most respected and valued company by connecting, informing, and entertaining people everywhere in innovative ways that will enrich their lives. VALUES: The company stresses on the following values: creativity, customer focus, agility, teamwork, integrity, diversity, and responsibility.
AOL TIME WARNER’S OTHER BUSINESSES: In order to maximize the value of the company’s combination of brands and other assets and to push forward future growth that will revolutionize the media and communications industry, their main focus lies in subscription services, advertising nd commerce, and content. Interactive Services and Properties: AOL Networks: Turner Broadcasting Home Box office Publishing:Time Inc. Time Warner Trade Publishing Filmed Entertainment: Warner Bros.
New Line Cinema Music: Warner Music Group Cable Systems: Time Warner Cable FINANCIAL INFORMATION Following its $106. 2 Billion merger with Entertainment giant Time Warner, AOL managed to fight off the first-quarter blues that impacted nearly every other Internet company and posted positive numbers. During the first quarter of 2001, AOL soared from $1. 81 Billion to $ 2. 12 Billion as ad and commerce revenue rose 37% otalling $731Million. Financial analysts were proven wrong when revenues rose 9% from $8. 32 Billion to $9. 08 Billion.
Analysts attributed the gains to some of AOL’s cross-promotional activity with Time Warner as well as its marketing might. In terms of on-line advertising shares AOL controls 45% of the total market. Bob Pittman, the Chief Operating Officer of AOL forecasts sales of $40 Billion this year, a 12% increase over 2000 and $11 Billion before taxes in earnings. Therefore increasing earnings 30% over last year. Though their stock has fallen from $69 last May to $35 at present, the number of subscribers ontinue to rise. In fact, AOL brings more than 31 Million total subscribers globally.
The Company’s reported net loss, including merger-related expenses and pre-tax non-cash charges of $620 million reflecting the write-down of certain investments in the AOL Time Warner investment portfolio, was $1. 4 billion, or $0. 31 per share. On the same basis in the year-ago quarter, the Company’s reported net loss, including one-time events, was $1. 5 billion, or $0. 34 per share. In addition, the quarter’s specific highlights include: *Subscriptions: AOL Time Warner’s total subscriptions grew to more than 133 million, a early 16% increase during the year.
In the quarter, the flagship AOL service alone added more than 2 million new members for a total of 28. 8 million. *Advertising and Commerce: Strong growth in advertising and commerce revenues were led by year-over-year increases of 37% at America Online and 17% at Time Warner Cable. *Share Repurchase Program: The Company repurchased 14. 1 million shares of its common stock at a cost of $615 million, as part of its previously announced program to repurchase up to $5 billion over the next two years. The schedules below reflect AOL Time Warner’s performance for the March quarter (in millions):
CONTACTS: Edward Adler Tricia Primrose Corporate CommunicationsCorporate Communications (212) 484-6630 (212) 484-7450 Richard Hanlon Eileen Naughton Investor Relations Investor Relations (703) 265-1271 (212) 484-7640 PUBLIC RELATIONS EFFORTS AOL Time Warner believes that developing media and communications policies are essential in the Internet Century. The following are the company’s position on specific issues of public policy: Education and the 21st Century Literacy Issues: AOL Time Warner believes that public policy must reflect the changing landscape of education and the changing needs of young people entering oday’s job market.
The AOL Time Warner Foundation is committed to making technology, education and 21st century literacy public policy priorities at the federal, state and local level. Closing the Digital Divide: AOL Time Warner supports a wide range of initiatives designed to develop the information infrastructure, provide better education and awareness, and bolster community-based projects around the world. The company is committed to working with lawmakers and advocates to encourage a policy and regulatory environment that fosters widespread access to information and communications technology in the U. S. nd abroad.
Privacy, Security, and Consumer Protection: AOL Time Warner has established the strongest consumer protection and privacy standards in the industry. Their commitment to ensuring children’s online privacy and security is a centerpiece of the public policy agenda: from putting in place special parental controls that help parents guide their children’s online experience, to working within the industry to increase public awareness, provide families with valuable new tools and resources for the Information Age, and teach young people what they need to know to have a safe, enriching experience in cyberspace.
AOL Time Warner is committed to helping establish industry-wide standards that benefit the development of the online medium and consumers. Consumer Choice of Internet Service Providers: The coming of broadband technology is turbo-charging media and communications and benefiting consumers in innovative new ways. AOL Time Warner’s multi-year investment in fiber optic and digital technology already enables more than 12 million consumers around the country to receive more and better video programming, enhanced picture and sound quality, improved signal reliability and advanced communications products and services.
They are committed to working within the industry and with lawmakers to promote market-driven policies that encourage the continuation of this robust and innovative environment for new digital services and expanded consumer choice. The First Amendment: The First Amendment also protects freedom of expression and AOL Time Warner is committed to fostering human imagination and creativity. And the company will continue to oppose efforts to censor, intimidate or chill the freedom to express what is in our hearts and minds.
Since the first Internet content debate in 1995 concerning the Communications Decency Act, efforts o regulate Internet content from sex to gambling to advertising and other content have continued apace. AOL Time Warner has long been an advocate of putting those decisions through technology in the hands of consumers. Responsible Guidance on Entertainment: AOL Time Warner is dedicated to providing world-class entertainment, both online and off.
Across all of our businesses, our company takes our responsibility to consumers seriously providing them with the guidance they need to make informed decisions for themselves and their families. Intellectual Property: AOL Time Warner supports strong protection of ntellectual property rights, both online and off. They have a long history of supporting efforts to combat piracy of videocassettes, CDs, books and more.
Enforcement of existing law, development of protective technology and new business plans to make these works available to everyone in every format, on every device, and over every medium, regardless of ownership, are of high importance to their strategy on intellectual property protection. At the same time, AOL Time Warner believes that liability rules for infringing material and other illegal content should never unnecessarily impede innovation.
International Telecommunications Issues: AOL Time Warner is working to eliminate outmoded barriers to trade and impediments to the free flow of information caused by legacy telecommunications systems, while respecting existing frameworks and cultural differences, and strengthening their global commitment to protect consumers and children. In addition, the company is working toward privatization and liberalization of national telecommunications and communications marketplaces, so the Internet is affordable for the greatest number of people.
Trade and E-Commerce: AOL Time Warner is actively working to persuade WTO members to commit to opening their markets in sectors critical to initiating and completing an e-commerce transaction. In addition, AOL Time Warner believes that Internet-based electronic transmissions should not be subject to tariffs or any customs duties, and that national regulations affecting e-commerce should be non-discriminatory, transparent and the least restrictive of trade as possible.
Postal Rates: In an environment where US Postal Service volume especially in First Class, which serves so many businesses could decline from electronic competition, AOL Time Warner is working with all ther stakeholders in the system to develop innovative and forward-looking policies that help to maintain a Postal Service that the public expects and business needs to thrive in the 21st Century. AOL Time Warner Foundation and Corporate Citizenship AOL Time Warner hopes to utilise the Foundation to set higher standards for corporate citizenship.
The company aims to combine its communications, media and information technology strengths to educate, inform and inspire people around the world. The AOL Time Warner Foundation believes the areas where it can impact the most are Equipping Kids for a Better Future, Extending Internet Benefits o All, Engaging Communities in the Arts, and Empowering Citizens & Civic Participation. CRISIS AREAS The main crisis area for AOL Time Warner lies primarily within the merger of the two companies. The merger began in 1999 and was not complete until 2000.
The merger was a success, even though the company as a whole took minor stock price and profit losses. The combination, however, has allowed them to combine their vast media, communications, and information technologies to create a communications giant. Immediately following the initial releases concerning the merger many critics surfaced. The ccusation was that AOL and Time Warner were forming a monopoly and the FTC should not allow it to take place. They made it past these accusations by implementing massive community-oriented efforts, labelled as the AOL Time Warner Public Policy.
Other areas of stress for the two newly combined companies include Broadband and Expansion concerns. After leading the campaign to force AT&T to allow open access to high-speed networks, AOL feared that AT&T would not give them access to these new high-speed technologies. Currently though, AT&T holds a large stake in Time Warner Entertainment and, therefore, has allowed AOL access. Just in case this does not last AOL has been investing in other means of delivering broadband services (such as conventional telephone lines and satellite television.
Without telephone company co-operation, AOL Time Warner cannot expand easily into other countries. Charges are not uniform and th Aol Time Warner Analysis COMPANY OVERVIEW OWNERSHIP STRUCTURE Time Warner- America On-Line’s ownership structure consists of the Board of Directors, Senior Corporate Executives, and Senior Corporate Officers. It is the largest Internet company in the world. America-On Line aims to shape the Internet Age through providing outstanding ervices as a provider, partner, and a corporate citizen. The company believes that social responsibility is a very integral part of their mission.
They aim to provide the highest quality products and services and to act with integrity, and contribute to the common good. The company’s corporate life and culture stresses on promoting an ethic of volunteerism and civic engagement. MISSION: To become the world’s most respected and valued company by connecting, informing, and entertaining people everywhere in innovative ways that will enrich their lives. VALUES: The company stresses on the following values: reativity, customer focus, agility, teamwork, integrity, diversity, and responsibility.
AOL TIME WARNER’S OTHER BUSINESSES: In order to maximize the value of the company’s combination of brands and other assets and to push forward future growth that will revolutionize the media and communications industry, their main focus lies in subscription services, advertising and commerce, and content. Interactive Services and Properties: AOL Networks: Turner Broadcasting Home Box office Publishing:Time Inc. Time Warner Trade Publishing Filmed Entertainment: Warner Bros. New Line Cinema Music: Warner Music Group Cable Systems: Time Warner Cable FINANCIAL INFORMATION Following its $106. Billion merger with Entertainment giant Time Warner, AOL managed to fight off the first-quarter blues that impacted nearly every other Internet company and posted positive numbers. During the first quarter of 2001, AOL soared from $1. 81 Billion to $ 2. 12 Billion as ad and commerce revenue rose 37% totalling $731Million. Financial analysts were proven wrong when revenues rose 9% from $8. 32 Billion to $9. 08 Billion. Analysts attributed the gains to some of AOL’s cross-promotional activity with Time Warner as well as its marketing might. In terms of on-line advertising shares AOL controls 45% of the total market.
Bob Pittman, the Chief Operating Officer of AOL forecasts sales of $40 Billion this year, a 12% increase over 2000 and $11 Billion before taxes in earnings. Therefore increasing earnings 30% over last year. Though their stock has fallen from $69 last May to $35 at present, the number of subscribers continue to rise. In fact, AOL brings more than 31 Million total subscribers globally. The Company’s reported net loss, including merger-related expenses and pre-tax non-cash charges of $620 million reflecting the write-down of certain nvestments in the AOL Time Warner investment portfolio, was $1. 4 billion, or $0. 1 per share. On the same basis in the year-ago quarter, the Company’s reported net loss, including one-time events, was $1. 5 billion, or $0. 34 per share. In addition, the quarter’s specific highlights include: *Subscriptions: AOL Time Warner’s total subscriptions grew to more than 133 million, a nearly 16% increase during the year. In the quarter, the flagship AOL service alone added more than 2 million new members for a total of 28. 8 million. *Advertising and Commerce: Strong growth in advertising and commerce revenues were led by ear-over-year increases of 37% at America Online and 17% at Time Warner Cable. Share Repurchase Program: The Company repurchased 14. 1 million shares of its common stock at a cost of $615 million, as part of its previously announced program to repurchase up to $5 billion over the next two years. The schedules below reflect AOL Time Warner’s performance for the March quarter (in millions): CONTACTS: Edward Adler Tricia Primrose Corporate CommunicationsCorporate Communications (212) 484-6630 (212) 484-7450 Richard Hanlon Eileen Naughton Investor Relations Investor Relations (703) 265-1271 (212) 484-7640
PUBLIC RELATIONS EFFORTS AOL Time Warner believes that developing media and communications policies are essential in the Internet Century. The following are the company’s position on specific issues of public policy: Education and the 21st Century Literacy Issues: AOL Time Warner believes that public policy must reflect the changing landscape of education and the changing needs of young people entering today’s job market. The AOL Time Warner Foundation is committed to making technology, education and 21st century literacy public policy priorities at the federal, state and local level.
Closing the Digital Divide: AOL Time Warner supports a wide range of initiatives designed to develop the information infrastructure, provide better education and awareness, and bolster community-based projects around the world. The company is committed to working with lawmakers and advocates to encourage a policy and regulatory environment that fosters widespread access to information and communications technology in the U. S. and abroad. Privacy, Security, and Consumer Protection: AOL Time Warner has established the strongest consumer protection and privacy standards in the industry.
Their commitment to ensuring children’s nline privacy and security is a centerpiece of the public policy agenda: from putting in place special parental controls that help parents guide their children’s online experience, to working within the industry to increase public awareness, provide families with valuable new tools and resources for the Information Age, and teach young people what they need to know to have a safe, enriching experience in cyberspace. AOL Time Warner is committed to helping establish industry-wide standards that benefit the development of the online medium and consumers.
Consumer Choice of Internet Service Providers: The coming of broadband technology is urbo-charging media and communications and benefiting consumers in innovative new ways. AOL Time Warner’s multi-year investment in fiber optic and digital technology already enables more than 12 million consumers around the country to receive more and better video programming, enhanced picture and sound quality, improved signal reliability and advanced communications products and services.
They are committed to working within the industry and with lawmakers to promote market-driven policies that encourage the continuation of this robust and innovative environment for new digital services and expanded consumer choice. The First Amendment: The First Amendment also protects freedom of expression and AOL Time Warner is committed to fostering human imagination and creativity. And the company will continue to oppose efforts to censor, intimidate or chill the freedom to express what is in our hearts and minds.
Since the first Internet content debate in 1995 concerning the Communications Decency Act, efforts to regulate Internet content from sex to gambling to advertising and other content have continued apace. AOL Time Warner has long been an advocate of putting those decisions through technology in the hands of consumers. Responsible Guidance on Entertainment: AOL Time Warner is dedicated to providing world-class entertainment, both online and off.
Across all of our businesses, our company takes our responsibility to consumers seriously providing them with the guidance they need to make informed decisions for themselves and their families. Intellectual Property: AOL Time Warner supports strong protection of intellectual property rights, both online and off. They have a long history of supporting efforts to combat piracy of videocassettes, CDs, books and more.
Enforcement of existing law, development of protective technology and new business plans to ake these works available to everyone in every format, on every device, and over every medium, regardless of ownership, are of high importance to their strategy on intellectual property protection. At the same time, AOL Time Warner believes that liability rules for infringing material and other illegal content should never unnecessarily impede innovation.
International Telecommunications Issues: AOL Time Warner is working to eliminate outmoded barriers to trade and impediments to the free flow of information caused by legacy telecommunications systems, while respecting existing frameworks and cultural differences, and strengthening their lobal commitment to protect consumers and children. In addition, the company is working toward privatization and liberalization of national telecommunications and communications marketplaces, so the Internet is affordable for the greatest number of people.
Trade and E-Commerce: AOL Time Warner is actively working to persuade WTO members to commit to opening their markets in sectors critical to initiating and completing an e-commerce transaction. In addition, AOL Time Warner believes that Internet-based electronic transmissions should not be subject to tariffs or any customs duties, and that national regulations ffecting e-commerce should be non-discriminatory, transparent and the least restrictive of trade as possible.
Postal Rates: In an environment where US Postal Service volume especially in First Class, which serves so many businesses could decline from electronic competition, AOL Time Warner is working with all other stakeholders in the system to develop innovative and forward-looking policies that help to maintain a Postal Service that the public expects and business needs to thrive in the 21st Century. AOL Time Warner Foundation and Corporate Citizenship AOL Time Warner hopes to utilise the Foundation o set higher standards for corporate citizenship.
The company aims to combine its communications, media and information technology strengths to educate, inform and inspire people around the world. The AOL Time Warner Foundation believes the areas where it can impact the most are Equipping Kids for a Better Future, Extending Internet Benefits to All, Engaging Communities in the Arts, and Empowering Citizens & Civic Participation. CRISIS AREAS The main crisis area for AOL Time Warner lies primarily within the merger of the two companies. The merger began in 1999 and was not complete until 2000.
The merger was a success, even though he company as a whole took minor stock price and profit losses. The combination, however, has allowed them to combine their vast media, communications, and information technologies to create a communications giant. Immediately following the initial releases concerning the merger many critics surfaced. The accusation was that AOL and Time Warner were forming a monopoly and the FTC should not allow it to take place. They made it past these accusations by implementing massive community-oriented efforts, labelled as the AOL Time Warner Public Policy.
Other areas of stress for the two newly combined ompanies include Broadband and Expansion concerns. After leading the campaign to force AT&T to allow open access to high-speed networks, AOL feared that AT&T would not give them access to these new high-speed technologies. Currently though, AT&T holds a large stake in Time Warner Entertainment and, therefore, has allowed AOL access. Just in case this does not last AOL has been investing in other means of delivering broadband services (such as conventional telephone lines and satellite television. Without telephone company co-operation, AOL Time Warner cannot expand easily into other countries.