Bewkes will take over from Parsons at Time Warner

ByABC News
November 5, 2007, 7:31 PM

NEW YORK -- Parsons, who will stay as chairman of the board, said in a statement that Bewkes "will have my full support, and I am confident that Jeff will deliver a new era of growth for all of our company's important stakeholders."

Bewkes added: "We have a lot to do, and I'm intensely focused on building shareholder value."

The announcement comes as Time Warner prepares to disclose on Wednesday its third- quarter financial results.

Wall Street's impatient with the recent pace of growth at the film, television, Internet, and publishing giant. Time Warner shares are down about 10% over the last 12 months hitting $18.11 as of mid-afternoon.

The lackluster recent stock performance has led to speculation that Bewkes might make a dramatic change quicklyfor example, selling AOL, the cable systems or magazine publishing.

"Dick had a clear view that the company should be kept together in its current form," says Bernstein Research analyst Michael Nathanson. "Jeff's views are less well known and developed."

But Bewkes is a familiar presence, having worked his way up the ranks at HBO in a seven-year period during which it became famous for original shows including The Sopranos and Sex and the City.

He also won the respect of many company watchers for having opposed former CEO Gerald Levin's decision in 2000 to merge Time Warner with AOL now widely considered one of the worst business deals ever.

In 2002, Bewkes was promoted to chairman of Time Warner's entertainment and networks group. He became the company president and chief operating officer in 2006.

"Jeff is more of a born-and-bred media operator, while Dick was more of an executive," says Todd Freeland, managing director at BMO Capital Markets.