AOL Clouds Icahn Battle

Jeffrey Bewkes, Time Warner's Entertainment & Networks Group chairman, acknowledged this week at a Merrill Lynch media conference that online platforms such as AOL are in some ways competitive with the cable business. But at the same time, he said, having the infrastructure to deliver broadband video content is a boon for the cable operator as well as for Time Warner's content side.

In other words: Time Warner wants AOL broadband content delivered through Time Warner Cable's pipes, not through someone else's. According to Bewkes, this setup "supports the operating structure" on all sides.

And while AOL has been struggling, its possible contributions to Time Warner still loom large in a digital age. AOL has 110 million unique visitors per month, according to the company.

As new broadband services materialize and evolve, Parsons doesn't want AOL hung out to dry. Instead, he is looking for Time Warner Cable subs to grow AOL broadband and bolster other aligned services. That's one synergy gamble Parsons wants to go the right way.

Parsons has been very quiet about Icahn's maneuvers, choosing instead to speak through representatives. The official response this week came from a spokesperson, who said, "Our board and management are, of course, committed to creating long-term value for all Time Warner shareholders."

"To that end, we have in place a process through which we are carefully reviewing a range of options to increase the value of our company, including those proposed by Mr. Icahn and his group. Investors should rest assured that this evaluation is being done in a prudent and deliberate manner with an eye towards creating sustainable value for all of our shareholders," the spokesperson said.

And to be sure, there are plenty of reasons to believe that the combination of content assets and distribution assets across all media companies have not lived up to their joint billing. But where others such as Viacom(VIA.B Quote), Emmis(EMMS Quote), Disney(DIS Quote) and Clear Channel(CCU Quote) have found a clear path to dividing their assets in this age of disassembly, AOL gives Parsons a more complicated problem.