Media conglomerate(Time Warner)

About time warner (history)

Time Warner is a massive multimedia conglomerate starting in the 1920s as Time magazine. Time Warner Inc., a global leader in media and entertainment with businesses in television networks and film and TV entertainment, uses its industry-leading operating scale and brands to create content worldwide on a multi-platform basis.

Time inc magazine and Warner communications merged to create time Warner in 1990. from there the largest media conglomerate in the world was born, only to be dethroned years later.

Time Warner timeline

1923: Time, a weekly

magazine, makes its debut.

1972: Home Box

Office pay-TV cable channel is

launched.

1989: Merger of Time Inc. and Warner Communications

is announced. Combined

company adopts Time Warner Inc. name.

1996: Time Warner

acquires Turner Broadcasting

System, getting CNN, TNT, TBS and the Atlanta

Braves.

2000: Time Warner

and Internet service AOL  announce $106

billion megamerger, Company is

renamed AOL Time Warner.

2003:Warner Music Group unit is sold for about

$2.6 billion to a group of investors

2009: AOL unit and Time Warner

Cable unit are both spun off,

drastically narrowing the

company's business scope

to media.

2014:Time Inc. magazine

division is spun off, leaving Time

Warner Inc. mostly in the television and

movie business.

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TimeWarner divisions These divisions are at the top of there

industry’s, these include:Warner bros.HBO Turner

Home box office inc. (HBO) Home Box Office, Inc. owns and operates the multichannel subscription television

properties HBO and Cinemax. At the end of 2014, HBO reported a total of 138 million paid subscribers worldwide, including 46 million subscribers in the U.S. The company also distributes its original programming on DVD and Blu-ray disks and through other delivery channels. Its revenue was nearly $5.4 billion in 2014.

Successful shows exclusive to HBO include Game of thrones, a global phenomenon that has drawn millions of subscribers to HBO and the Sopranos.

HBO boxing is an American telvision service that broadcasts some of the most prestigious and biggest fights from the past and recently including; Muhammad Ali vs George foreman, Marvin haggler vs Thomas Hearns and Manny Pacquio vs Floyd Mayweather jr.

HBO and Cinemax use original programming and licensed content that includes many recently released feature films from some of the country's top film studios. Original programming includes dramatic and comedic series, feature films and live programming, including sports, comedy and music events. Home Box Office partners with Warner Bros. Entertainment to develop and produce many of its original series. In April 2015, the company introduced its paid HBO Now streaming video service, which provides full access to original HBO programming with no cable subscription required to view content.

http://www.hbo.com/

Types of media/assets owned (cross media ownership)Time Warner is formerly the largest media conglomerate in the world, currently it is mainly in the television and film business it had owned assets ( that was not spun off or sold) and divisions in the internet, broadcasting, publishing, film, telecommunications and music

Current assets owned is:

HBO ,turner broadcasting , Warner bros interactive. Entertainment , Warner bros. Television group, Warner bros, home entertainment group

Time Warner vertical integration Time Warner uses vertical integration in many of its productions . Warner Bros. is owned by Time Warner,

which is a multi-national media conglomerate. 

Time Warner owns companies at each stage of the supply chain enabling the institution to maximise profits and tap into new global markets. 

An Example of Vertical Integration used by time Warner is in in Harry Potter and the Deathly Hallows: Part 2

Harry Potter, a huge movie franchise, is an example of how vertical integration in order to maximise the earnings from productions.ProductionHarry Potter and the Deathly Hallows: Part Two, was created by Warner Bros. pictures, in association with Heyday Films.DistributionIt was then distributed by Warner Bros. Distribution.MarketingThe film was marketed using several of Time Warner's companies. HBO ran a behind the scenes making of HP7 before its cinematic release. CNN, another Time Warner company, was able to use its position as a news station with worldwide reach to promote HP7 through its Larry King Special programme which interviewed HP7 actors before the red carpet premiere.

Time magazine also ran special features on Harry Potter before and after the film was released to not only ensure people went to watch it at the cinema but keep interest up for DVD sales.

Warner bros. interactive entertainment (video game industry) Warner bros licensed out there first video game property in 1995, batman forever

and continued to license games based on Warner bros film properties. This company publishes these games ,which include licensed company's and original content.

While movie and TV producers have a bad record in video games, the reverse is the same for video game adaptions of movies, warner bros. interactive entertainment has been highly successful recently. Its success is credited to it seven subsidiaries who make independent decisions based on creative ideas not based around movie scripts.

the 7 seven subsidiaries of Warner bros interactive entertain include: Rocksteady studios, monolith productions, NetherRealm studios, TT games, Warner bros. games Montreal turbine and Warner bros games. san Francisco.

Commercially successful video games published under warner bros. interactive entertainment include: batman Arkham series, F.E.AR. Series, shadow of mordor, mad max and mortal kombat . Other well know games warner bros. interactive partnered with ,and is a massive success, is Witcher 3 wild hunt, warner bros were responsible for distributing the product across north America.

Its total revenue in 2015 is $2.2 billion

Toy/ merchandise market Most toys/ merchandise warner bros distribute is based on films they produce,

examples include: Harry potter figurines, batman figurines t shirts, lord of the rings- the hobbit figures. Another product is Lego dimensions a hybrid between digital entertainment and toys. A skylanders type game which where toys are bought physically to play a character in a video game.

Investments In 2014 time warner made investments in LeBron James’s social

media company ‘uninterrupted’. Time warner, led by its warner bros division invested $15.8 million in the company. his site is based around

Because of this initial investment, lebron james is expected to be seen in future film credits

Time Warners most recent investment is ‘mashable’, the tech and pop culture news site. Time Warner already owns a stake in the company.

Investments are made through time Warners venture arm time Warner investments

Assets sold by TimeWarner many assets have been sold or spun off by time Warner reducing its

cross media ownership image.

Some examples include: Atlanta braves, time Warner book group, time warner music group, Warner- amex satellite entertainment co. And atari.

Because so many of there assets have been sold or spun off it has massively affected its business scope in media leaving it mostly it in the film and television business.

Successful media products by TimeWarner A particular movie success by Warner bros. Is batman the dark knight which

grossed a total $533,345,358.

HBOs game of thrones is massive boost to HBOs subscriber count, with an average 7.5 million viewers per episode since season 4. its massive internet buzz generates revenue

Video games by published Warner bros. Interactive entertainment such as batman arkham knight and mortal kombat x generated more than $500 million in its second quarter and leaded the US video game market share in 2015.

How much are TimeWarner worth

“The current market cap (number of shares outstanding times the current market price per share of stock) for Time Warner, Inc. ( NYSE:TWC) and Time Warner Cable, Inc (NYSE:TWX) is $52.5 and $55.8 billion, respectively.”

Time warner globalisation HBOs and cinemax cable television operate in 50 countries around the world

throughout europe, americas, asia

Overseas business generate $2.5 billion in revenue and $500 million in operating profit

In south America time warner operates through many channels like:

HBO Latin America

HBO brazil

Cinemax Latin America

Scandals by TimeWarner Time Warner was charged by SEC for fraud, aiding and abetting

frauds by others and violating a cease -and-desist order.

The reason of this was because of allegations related to online advertising deals that helped the company artificially inflate revenue.

It was settled in 2005 when they agreed to pay securities regulators $300 million

Merger agreement/ hostile takeover Recently Comcast and charter have tried to purchase time warner

cable. Comcast failed in the acquisition due to massive concerns from the general public, industry players and department of justice that the deal would grant too much power in the industry by owning 37% of the high speed internet market.

Charter has now attempted a merger of time Warner cable and has nearly succeeded, acquiring both time Warner cable and bright house networks. This merger idea has upset advocacy groups saying that such a massive internet and cable company will lead a lack of competition , increased prices and poor customer service, potentially leading to oligopoly.

Time warner merge AOL disaster

Time Warner purchased AOL to merge there companies to produce a synergistic future that would create a massive multi media conglomerate worth $300 billion , renaming the company AOL time Warner the deal was set in 2000, but ended in disaster.

Due to cultural differences in the way they operated, disrespect for each other and both companies vying for top executive positions ,the merger failed. AOL was forced to take a goodwill write off of $99 billion. AOL started to lose subscribers and subscriber revenue. After 7 years time Warner and AOL demerged and left, both company's value dropped, a seventh of there pre merger price. This event has named the ‘biggest mistake in corporate history’ and still stands as a lesson to investors about potential business combinations.

Rumours A current rumour as of march 2016 states that apple is

attempting to gain assets from time Warner to assemble a “skinny bundle” of highly desired channels.

If it bought time Warner , which is possible since its one the limited media Companies with the money to do so, it would gain HBO and therefore have major movies and television series like Game of thrones available for its streaming service

Time warner stocks/ finance