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  "documentTitle": "Time Warner Inc. (TWX)",
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  "presentationDate": "2006-02-01 00:00:00",
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  "notes": "This slide functions as a case study critique of corporate divestiture strategy, specifically focusing on the failure to maximize value for shareholders compared to private equity.",
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      "kind": "callout",
      "text": "Exhibit 3.4: THE DECISION TO SELL WMG",
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      "text": "Nobody's focusing on shareholder value.",
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      "text": "In November 2003, TWX agreed to sell WMG to a private equity consortium for $2.595 billion... WMG has a current equity value of approximately $3.1 billion and an enterprise value of over $5.0 billion.",
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      "text": "Since the merger with AOL in 2001, the bondholders of TWX have generated a 46% overall return. Shareholders were not so fortunate. During the same period, TWX shareholders have lost more than 60% of the value of their investment.",
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      "text": "TWX did sell some non-core assets, but failed to dispose of others... The logic to sell Comedy Central and WMG can be debated, however, the cost of the decision cannot - approximately $3.0 billion of value was transferred from TWX to the buyers.",
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      "text": "As one media consultant said, “It’s rather sad that AOL Time Warner couldn’t keep one of its most valuable brands in television like Comedy Central” — Media Consultant. “Companies like AOL are having to sell their best and most profitable assets in order to make a dent on the debt on their balance sheets. Nobody’s focusing on shareholder value.” — Bond Investor.",
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      "kind": "source-note",
      "text": "(a) David Kirkpatrick... (g) Assumes price appreciation of 5.7%...",
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      "kind": "title",
      "text": "CHAPTER 3: FINANCIAL STRATEGY AND DEBT CAPACITY",
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