Updated from 10 a.m. Restive shareholder Carl Icahn turned up the heat on Time Warner ( TWX) on Tuesday, accusing the company of suffering from "the paralysis of inaction." Icahn and his hedge fund buddies have begun accumulating the stock in hopes of shaking up the stagnant media giant, whose shares haven't moved in two years following a precipitous plunge in the aftermath of 2001's disastrous AOL-Time Warner merger. Icahn's Tuesday statement took a more combative tone than his previous comments. He reiterated his demand that management, led by CEO Dick Parsons, fully spin off the company's cable arm and buy back $20 billion worth of stock. He also urged greater shareholder representation on the media giant's board. "The Time Warner PR machine would like you to believe that Mr. Parsons and the Time Warner Board have been performing well and taking the necessary steps to deliver value for shareholders, and it appears that many in the press have accepted this storyline," Icahn wrote in a Tuesday letter to Time Warner shareholders. "But after taking a closer look at the years following the merger with AOL, it is clear that there have been a series of significant missteps by the Board and Time Warner's senior management which have resulted in the further destruction of value." Time Warner replied that its board and execs have in recent years "have demonstrated their commitment to creating shareholder value, pursuing a strategy that focuses on creating sustainable long-term value in all our businesses while optimizing our capital allocation and leverage." Ever since Icahn began criticizing the company, Time Warner has stubbornly defended its plan to spin off 16% of the cable operation and to buy back as much as $5 billion worth of stock. In addition to the universally mocked merger that created the company, Icahn lambasted the subscriber hemorrhage at AOL, the sale of Warner Music ( WMG) and Comedy Central at what he called "fire sale" prices, and the failure to acquire the MGM movie studio. He also took Time Warner to task for what he called its "bloated cost structure," including the recently erected Time Warner Center in midtown Manhattan.