{
  "docId": "019dd923-622b-71dc-a6dc-5545fa71721e",
  "docSlug": "852eb8103109",
  "documentTitle": "Time Warner Inc. (TWX)",
  "authorId": "14_Icahn",
  "authorName": "Lazard",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "activist_investor",
  "sourceTypeLabel": "Activist investor",
  "presentationDate": "2006-02-01 00:00:00",
  "orientation": "portrait",
  "aspectRatio": 0.77272725,
  "pageNumber": 345,
  "pageCount": 371,
  "prevPage": 344,
  "nextPage": 346,
  "slideType": "executive_summary",
  "function": "diagnose_problem",
  "density": "overcrowded",
  "nDataPoints": 2,
  "notes": "This is a page from a Lazard activist report criticizing Time Warner's management.",
  "elementsJson": [
    "paragraph",
    "footnote"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622b-71dc-a6dc-5545fa71721e/345",
  "deckHref": "/decks/019dd923-622b-71dc-a6dc-5545fa71721e",
  "deckJsonHref": "/decks/019dd923-622b-71dc-a6dc-5545fa71721e.json",
  "deckAnchorHref": "/decks/019dd923-622b-71dc-a6dc-5545fa71721e#slide-345",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "The poor stock price performance by a company with one of the best collections of media assets is principally a reflection of a lack of a clearly defined strategy and a short-term focus.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-14dc-7419-88bc-e0424e20dec8",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.25,
        "w": 0.764,
        "x": 0.118,
        "y": 0.493
      },
      "kind": "list",
      "text": "Continuance of the Walled Garden Strategy Beyond its Useful-Life. For years, AOL had committed itself to a walled garden strategy... [detailed critique of the strategy]",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "142dbb10-3f82-421e-b88e-754256193ebe",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.085,
        "w": 0.764,
        "x": 0.118,
        "y": 0.393
      },
      "kind": "list",
      "text": "A. Failure to Nurture or Invest in AOL: At the time of the AOL Time Warner merger, AOL was the leading online franchise. Five years later, it is merely an \"also ran.\" TWX has managed AOL as a declining annuity without the necessary reinvestment in new technologies, services or products. TWX has also made a number of strategic blunders that has handicapped AOL's development and allowed competitors, such as Yahoo and Google, to secure powerful market positions in the Internet economy. These strategic mistakes included:",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "35fbdafc-46eb-46e5-bd99-779ead9cb698",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.045,
        "w": 0.764,
        "x": 0.118,
        "y": 0.333
      },
      "kind": "paragraph",
      "text": "The poor stock price performance by a company with one of the best collections of media assets is principally a reflection of a lack of a clearly defined strategy and a short-term focus. This has resulted in under-investment in its businesses and missed opportunities that could have created substantial value for TWX and its shareholders, including:",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "02ffcad6-fbb8-4346-b218-b21e90166b53",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.095,
        "w": 0.764,
        "x": 0.118,
        "y": 0.173
      },
      "kind": "paragraph",
      "text": "Although there were pressures on TWX in 2002 and 2003 to delever, those pressures emanated from short-term nervousness in the market and management's desire to maintain a Baa1/BBB+ rating. TWX, at the time, had ample liquidity and was not in financial distress or on the verge of losing an investment grade rating. TWX's financial strategy of debt reduction at a time of historically attractive long-term interest rates and abundant liquidity, resulted in an under-investment in the business, a tentative posture towards acquisition opportunities, the untimely divestiture of several core assets and delay in the authorization of a share repurchase program.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "37121787-e404-4219-8917-9c83da1be5dc",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.045,
        "w": 0.764,
        "x": 0.118,
        "y": 0.108
      },
      "kind": "paragraph",
      "text": "focused on delivering short-term earnings. The result has been dramatically more favorable for TWX's bondholders than stockholders. Since Mr. Parsons assumed the CEO position at TWX, TWX bondholders have reaped returns of approximately 40%. Shareholders were not so fortunate.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "dcaa0919-1c6f-4f0c-ad3f-54ab0d60b118",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.03,
        "w": 0.764,
        "x": 0.118,
        "y": 0.913
      },
      "kind": "source-note",
      "text": "(a) Includes price appreciation of 14.5% based on the weighted average price of TWX debt securities for which prices are readily available and coupon payments based on the weighted average interest rate of 7.4%, which is aggregated on an annual basis.",
      "attrs": {
        "numbered": true
      },
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "9168fb2b-5a0d-47ed-822f-d981e800619f",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.015,
        "w": 0.565,
        "x": 0.435,
        "y": 0.078
      },
      "kind": "title",
      "text": "CHAPTER 5: SUMMARY AND RECOMMENDATION",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "5c48747b-573c-4e6e-b47b-a917f19379c9",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.015,
        "w": 0.35,
        "x": 0.118,
        "y": 0.308
      },
      "kind": "title",
      "text": "(2) Under-Investment and Missed Opportunities",
      "attrs": null,
      "subkind": "subtitle",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "458c3f61-9eac-4bd9-9894-8a41e6372d7d",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [
    {
      "name": "Executive summary",
      "slug": "executive-summary",
      "agent": null,
      "layer": "slide",
      "matchId": "96240736-4d0b-4c3a-92bb-4979fd167c4f",
      "evidence": "CHAPTER 5: SUMMARY AND RECOMMENDATION",
      "confidence": 0.9
    }
  ],
  "frameworks": [],
  "arcBeats": [],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}