Blog Post

Time Warner CEO’s Moves Please Both Icahn and Cramer

Following quickly on a same-day Wal-Mart announcement, Time Warner CEO Dick Parsons said at the Reuters Media Summit that it will debut its own movie-download service next year. Time Warner is, of course, testing movie sales via kiosk at some Wal-Mart locations already. In a wide-ranging but not particularly detailed talk, Parsons touched on his usual message points — “Traditional media businesses are finding their way into the digital space without completely capsizing or cannibalizing their traditional media businesses” — and he didn’t rule out a move into politics some day. And he credited investor Carl Icahn, who made his life so miserable not so long ago, according to the Reuters report, “for expediting existing strategic plans for the media conglomerate, which drove up its share price this year.”
Dick says Carl is happier, Carl says Carl is happier, and at least one other investor agrees. On his CNBC screamfest Mad Moneylast night, James Cramer shouted “Buy! Buy! Buy! Dick Parsons is engineering the turnaround of a lifetime!”
Also, in the same talk, he threw cold water on speculative British media reports that it might want to sell its U.K. magazine arm IPC, and all but ruled out bidding for European broadcasters such as ITV, ProSiebenSat.1 and Endemol.