RoutemanDan
DIS Veteran
- Joined
- Dec 4, 2000
October 2, 2002 -- Dick Parsons is starting to fantasize about what he'll do with AOL Time Warner if he's ever able to dig the company out of the tremendous hole it's in.
He has a long way to go, but some of his top executives are starting to explore, in internal discussions only, the possibility of merging their operations with Disney, The Post has learned.
The internal reviews have not extended beyond the company's ranks, and any such deal would not happen for some time, if ever, a source said.
A company spokesman denied it. "What you're hearing is inaccurate," said Ed Adler, AOL Time Warner's chief spokesman. "We are focusing on running our business and there are absolutely no discussions about merging with Disney, either internal or external."
But a source confirmed the existence of the exploratory talks, which provide insight into where Parsons might like to take AOL Time Warner should he be able to right the ailing media giant's ship.
For such an ambitious merger to occur, however, Parsons would first need to consolidate his power.
The company's board has become increasingly divided between AOL and Time Warner loyalists, and Chairman Steve Case - AOL's founder, and the last major architect of the failed 2001 mega-merger still at the company - is on the ropes.
A number of major investors and board members have been pushing for Case's ouster, and most expect him to be gone by the company's annual meeting next spring, if not sooner.
Case's exit would allow Parsons to consolidate power, possibly as chairman. Sources predict that once Case leaves, Parsons would move to strip the AOL name from the company.
Parsons would also have to put the ongoing SEC accounting investigation into the AOL unit behind the him, and get the company's stock price - which is off more than 60 percent this year - back up, before he could pursue a deal with Disney or anyone else.
A merger with Disney would be appealing to Parsons because its ABC television division would give him something Time Warner has long wanted - a broadcast TV network. Disney would also provide powerhouse cable net ESPN, strong international assets and theme parks.
Recent talks between AOL Time Warner's CNN unit and Disney's ABC network about a joint news venture might help Parsons lay the groundwork for a full merger.
AOL Time Warner would spin off its cable assets to comply with regulations barring ownership of both cable systems and broadcast networks.
Parsons has already moved in that direction by agreeing to create a separate cable company to hold cable assets he shares with AT&T, which is about to sell its share to Comcast.
The media landscape is rapidly changing after years of furious acquisitions that left conglomerates, including AOL Time Warner and Vivendi Universal, heavily indebted.
Disney's stock is also in the toilet, thanks to investor worries about falling ratings at ABC and a sharp drop in attendance at its theme parks. Investors are clamoring for changes at the company.
At a Goldman Sachs investor conference yesterday in New York, Eisner said the odds of an ABC-CNN joint venture were 50/50, but added that he would love to do the deal.
http://www.nypost.com/business/58513.htm
He has a long way to go, but some of his top executives are starting to explore, in internal discussions only, the possibility of merging their operations with Disney, The Post has learned.
The internal reviews have not extended beyond the company's ranks, and any such deal would not happen for some time, if ever, a source said.
A company spokesman denied it. "What you're hearing is inaccurate," said Ed Adler, AOL Time Warner's chief spokesman. "We are focusing on running our business and there are absolutely no discussions about merging with Disney, either internal or external."
But a source confirmed the existence of the exploratory talks, which provide insight into where Parsons might like to take AOL Time Warner should he be able to right the ailing media giant's ship.
For such an ambitious merger to occur, however, Parsons would first need to consolidate his power.
The company's board has become increasingly divided between AOL and Time Warner loyalists, and Chairman Steve Case - AOL's founder, and the last major architect of the failed 2001 mega-merger still at the company - is on the ropes.
A number of major investors and board members have been pushing for Case's ouster, and most expect him to be gone by the company's annual meeting next spring, if not sooner.
Case's exit would allow Parsons to consolidate power, possibly as chairman. Sources predict that once Case leaves, Parsons would move to strip the AOL name from the company.
Parsons would also have to put the ongoing SEC accounting investigation into the AOL unit behind the him, and get the company's stock price - which is off more than 60 percent this year - back up, before he could pursue a deal with Disney or anyone else.
A merger with Disney would be appealing to Parsons because its ABC television division would give him something Time Warner has long wanted - a broadcast TV network. Disney would also provide powerhouse cable net ESPN, strong international assets and theme parks.
Recent talks between AOL Time Warner's CNN unit and Disney's ABC network about a joint news venture might help Parsons lay the groundwork for a full merger.
AOL Time Warner would spin off its cable assets to comply with regulations barring ownership of both cable systems and broadcast networks.
Parsons has already moved in that direction by agreeing to create a separate cable company to hold cable assets he shares with AT&T, which is about to sell its share to Comcast.
The media landscape is rapidly changing after years of furious acquisitions that left conglomerates, including AOL Time Warner and Vivendi Universal, heavily indebted.
Disney's stock is also in the toilet, thanks to investor worries about falling ratings at ABC and a sharp drop in attendance at its theme parks. Investors are clamoring for changes at the company.
At a Goldman Sachs investor conference yesterday in New York, Eisner said the odds of an ABC-CNN joint venture were 50/50, but added that he would love to do the deal.
http://www.nypost.com/business/58513.htm
