Time Warner CEO Jeff Bewkes kicked off his quarterly earnings call by explaining why the company is cutting hundreds of jobs in its Time Inc. magazine unit.
But if you’re impatient, you can simply look at this grim chart, which details the publisher’s Q3 performance
Yesterday, Viacom told Wall Street that its third quarter had been better than most analysts expected. Today Time Warner delivered a similar report: Revenue was on track, but cost savings improved the bottom line. That won’t help hundreds of Time Inc. employees who face job cuts this quarter. Meanwhile, the company can’t ditch AOL soon enough: It has already spent $100 million prepping it for a spinoff this year.
What’s one of the biggest names in magazine publishing worth? These days, maybe $5 million.
That’s the high end of the range Bloomberg will be paying for BusinessWeek, reports BusinessWeek. Next question: How many of the magazine’s employees stay on once the deal closes later this year? BusinessWeek publisher Keith Fox can’t make any assurances. But he does call the deal “exciting.”
Just in case anyone thought Time Warner had any lingering interest in NBC Universal, this ought to put it to rest: Time Warner CEO Jeff Bewkes just compared the proposed Comcast/NBCU deal with the disastrous one his company made with AOL nearly a decade ago.
Heavyweight media investor Gordy Crawford–who happens to own a big chunk of Time Warner–says the conglomerate plans to dump its magazine business. But I get the sense that Jeff Bewkes and company plan on keeping at least some of the unit’s iconic titles.
Liberty Media’s Starz Entertainment has signed on to Comcast’s “On Demand Online” program, which is the first test of the cable industry’s “authentication”/“entitlement” strategy. Or, as I like to call it, “Web TV You’ll Pay to See.”
Starz, which has the cable and Web rights to much of the Disney catalog, among other assets, says it will make some of those films, including “Wall-E” and “High School Musical 3,” available for Comcast’s test, which is supposed to launch this month. Also available: TV series like “Crash” and non-Disney movies like Sony’s “Step Brothers.”
Comcast was mum about other cable networks it has persuaded to join its “OnDemand Online” program, which will offer TV shows over the Web to its customers. But word is getting out anyway. The people who bring you Food Network and AMC, for instance, have signed on.
Time Warner CEO Jeff Bewkes and Comcast CEO Brian Roberts will announce this morning that their two companies are linking up for a trial of an “authentication” effort. That means a handful of cable subscribers will get online access to Time Warner TV shows that have been previously kept off the Web. The idea is to protect cable subscription revenues by giving pay TV subscribers–but only subscribers–Web access to all the shows they get on TV. It’s a simple idea, but making it a reality will be very, very complicated.
John Partilla, who oversaw “cross-platform sales” at Time Warner (TWX), is leaving the media conglomerate to take a similar post at radio and billboard giant Clear Channel. Partilla has been at Time Warner since 2004; prior to that, he’d worked for various ad agencies and had founded WPP’s Brand Buzz unit.
Time Warner has yet to dispose of AOL, but there’s lots of sotto voce chatter about CEO Jeff Bewkes’ next move. Last month, I reported that people familiar with Bewkes’ thinking believe he’s planning on selling off the company’s namesake Time Inc. publishing unit in 2010.
Today, Pali Capital analyst Rich Greenfield picks up the torch.
My former co-workers at Forbes are convinced that another round of cuts–it would be the third since November–is coming to the publisher. This won’t assuage their fears: High-profile investor Roger McNamee of Elevation Partners is stepping down from Forbes board and giving his seat to a member of his company’s “cost-cutting team.”
Here’s yet another fan of the Kindle, Amazon’s much-hyped e-book reader: News Corp. CEO Rupert Murdoch, who likes the device enough that he’s considering investing in a Kindle rival.
Everyone who wondered why Randy Falco and Ron Grant were still running AOL finally got an answer today: Time Warner was lining up their replacement. Google sales chief Tim Armstrong becomes chairman and CEO of the troubled Web property, effective immediately.
How did MegaVideo.com become the 10th most popular video site in the U.S.? By offering users really easy access to pirated movies and TV shows. If Hollywood doesn’t want to end up like the music business, it’s going to have to move very quickly.
Three years ago, Google invested $1 billion in Time Warner’s Web operation and said the entire business was worth $20 billion. Now, it’s shaving that estimate by 73 percent. Time Warner CEO Jeff Bewkes can’t be pleased.
Peter Kafka has been covering media and technology since 1997, when he joined the staff of Forbes magazine. Most recently, he has been the managing editor of the tech and media Web site, Silicon Alley Insider.
Here is a statement of my ethics and coverage policies. It is more than most of you want to know, but, in the age of suspicion of the media, I am laying it all out.
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