This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Case Closed at Time Warner

Steve Case resigned from Time Warner's (TWX) board, citing the need to tend to his modestly named new health care services company, Revolution.

The move comes more than two years after Case left the executive ranks of the New York media giant. Case was chairman at the company that was then called AOL Time Warner for two years after leading America Online to great success in the 1990s.

Case's resignation won't draw any tears on the part of Time Warner shareholders, who have seen their stock plunge over the five years since the merger was proposed. When the merger of America Online and Time Warner was proposed in January 2000, the transaction was billed as "the digital transformation of Time Warner" by then-Time Warner Chairman Jerry Levin, and as the spark of "the next Internet revolution" by Case.

But after the deal closed in January 2001, the course of events failed to fulfill the vision. Amid the collapse of the dot-com boom, allegations of inflated revenue recognition and declining numbers in AOL's once-booming subscriber counts, AOL's poor performance translated into serial financial disappointments for Time Warner. Rather than becoming the magic new-media ingredient in an old media company comprising cable systems, TV networks, a film studio and a stable of magazines, AOL became just another division -- an underperforming one at that.

Even so, Case's departure comes at a time of relative good news at AOL. The online service continues to hemorrhage subscribers in its core dial-up Internet service business, but AOL's Web sites have lately become a key strategic property in the fast-shifting online landscape. Just this fall, rivals as huge and far flung as Google (GOOG), Comcast (CMCSA), Microsoft (MSFT) and Yahoo! (YHOO) have entered talks over possible investments in AOL.

Last week, Time Warner signed AOL chief Jon Miller to a new three-year contract. Under Miller's leadership, AOL's reputation has improved with investors. Though the business continues to hemorrhage dial-up subscribers, losing 917,000 in the U.S. in the latest quarter, it is gaining advertising dollars as companies shift their spending online. AOL's second-quarter advertising sales rose 45% to $320 million in the second quarter. The unit also has put many of the features that were once available only to AOL members on its Web site, AOL.com, which started last year. An advertising campaign for AOL.com began earlier this month.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,894.45 -91.16 -0.54%
S&P 500 1,965.58 -7.25 -0.37%
NASDAQ 4,402.8320 -16.2020 -0.37%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs