Time Warner's Parsons plans exit
NEW YORK -- Parsons, who will stay as board chairman, 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 report its third-quarter results Wednesday.
Wall Street has grown impatient with the pace at the film, TV, Internet and publishing giant. Shares are down about 10% over the last 12 months and closed on Monday down 7 cents at $17.81.
The lackluster stock performance has led to speculation that Bewkes might make a dramatic change quickly — for 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 COO 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.
Parsons' personal and political skills as a protégé of former vice president Nelson Rockefeller served him well, though, in the tough years after the AOL deal.
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