CEO elect Jeffrey Bewkes won’t take the reins at Time Warner until Jan. 1, 2008, but Wall Street will be hanging on every word tomorrow, Wednesday, when the company reports third quarter earnings.
Topping concerns at the world’s largest media company is AOL’s Internet ad revenue, whose 40-plus percentage growth fell off a cliff in the second quarter, when it logged 16 percent growth. Third quarter online ad growth is largely expected to be the same. Any indications otherwise could please Wall Street.
Then there’s the cable market, which now faces increased competition from telephone companies. Some investors have pushed Time Warner to spin off more or all of its remaining 84 percent stake in Time Warner Cable.
Bewkes told the Wall Street Journal “everything is on the table” when it comes to the company’s structure, although changes won’t happen overnight. We’ll see if he means it on Wednesday.
Keep an eye on:
- Five newspaper giants discuss forming online ad network. (Chicago Tribune)
- Facebook to announce advertising strategy in New York. (Reuters)
- Advertisers are reviewing contracts after Hollywood writers strike forces networks to air reruns. (Reuters)
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