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  "documentTitle": "Time Warner Inc. (TWX)",
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  "authorName": "Lazard",
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  "presentationDate": "2006-02-01 00:00:00",
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  "notes": "This slide provides historical context for the dissolution of The WB network.",
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      "text": "TWX should have more actively pursued such discussions or other transactions with the WB at an earlier date to mitigate the meaningful annual losses from the network (estimated to be approximately $50-75 million for 2005E).",
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      "text": "During the 2004 - 2005 television season, the WB experienced a 16% decline in its target audience of young adults. This decline in audience has had a significant effect on the WB's ability to generate advertising revenue during the 2004 - 2005 broadcast season. Under-delivery of committed audience also results in the WB having to deliver additional advertising inventory to compensate advertisers. The WB, to offset this decline, has initiated a series of cost containment initiatives and introduced a new slate of programming in the fall of 2005 designed to further appeal to adults (A18-34), including shows such as Supernatural, Twins and Related.",
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      "text": "On January 24, 2006, TWX and CBS announced the merger of the WB and UPN Networks into a new network called The CW. Both TWX and CBS will each own 50% of the new network. The WB and UPN will cease operations in September 2006 when The CW will commence broadcasting. The decision to merge the two networks makes commercial and financial sense. TWX should have more actively pursued such discussions or other transactions with the WB at an earlier date to mitigate the meaningful annual losses from the network (estimated to be approximately $50-75 million for 2005E). The analysis assumes that TWX will now account for the WB investment as an unconsolidated asset. The Tribune Company, which owned 22.25% of the WB, exchanged its interest in the WB for a 10-year deal to carry The CW on its major market affiliates.",
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      "text": "It is estimated that the WB reaches 92% of all television households in the US. The important affiliates include Tribune Broadcasting (the network's flagship affiliate station group), Sinclair (19 stations), plus WB 100+ Station Group (a local cable-delivered station group representing markets 100-210, which signed on September 1998).",
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      "text": "Since its peak in 2001/2002, the WB's ratings have declined as it has struggled to change its brand and identity. Since its inception, the WB has catered to \"Generation Y\" -- a socio-economic group within the younger demographics -- but the network is now attempting to attract a broader demographic that would include adult viewers (A18-34), the demographic most sought by advertisers.",
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      "text": "The WB generates revenue primarily through the sale of network advertising time, which is sold exclusively on a national basis with local affiliated stations of the WB selling spot and local advertising. The WB is subject to CPM and other advertising trends in broadcast television. The WB competes for national advertising with the other major broadcast networks (e.g., ABC, CBS, NBC, FOX and UPN) as well as, increasingly, cable programming services.",
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      "text": "Overview\n\nThe WB is widely recognized as the first broadcast television network to capitalize on the trend toward increasingly fragmented television audiences. By targeting programming specifically to teens and to young adults, the WB has established a broadcast network in an era defined by cable television's incursion into the national television broadcast audience.",
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      "text": "(a) Company filings.",
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      "kind": "title",
      "text": "V. THE WB TELEVISION NETWORK",
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