Amid a tide of earnings reports from major media companies, investors are keeping close watch on Time Warner for clues on whether the conglomerate will keep or spin off AOL, its recently rejiggered one-stop shop for online advertising.

The more intense focus comes on the heels of Microsoft’s $45 billion bid to buy Yahoo. A deal, which would eliminate two potential partners or buyers of AOL but raise the valuations of online advertising assets, will redraw the Internet advertising landscape and consolidate power between Microsoft and Google.

Speaking of assets, Time Warner which reported its quarterly results on Wednesday, said it expects profit growth to slow in 2008 but possibly exceed Wall Street estimates. Its earnings for the end of last year reflected increases in broadband and phone subscribers at Time Warner Cable and sales of “Harry Potter” and “300″ home videos.

Stay tuned for any word from Chief Executive Jeffrey Bewkes (see picture) who is expected on Wednesday to discuss a plan to spin off the company’s ownership of Time Warner Cable.

Seperatley, Bewkes plans to lay off 75 or more people, primarily from the media conglomerate’s corporate offices, according to reports.

(Reuters )

Keep an eye on:

• Warner Music Group, the world’s third-largest music company, posted a net loss in its key December quarter, hurt by weak recorded music sales and costs related to a high-end concert promoter it purchased last May. (Reuters)
• McClatchy said it expected a lower quarterly profit from continuing operations and will record a charge to net earnings to account for a declining share price. (Reuters)
• IAC/InterActiveCorp, which is embroiled in a legal dispute with its controlling shareholder, posted a quarterly loss after a hefty charge for its online mortgage service LendingTree. (Reuters)
• The Writers Guild of America plans to brief its members this weekend on a deal taking shape to end their 3-month-old strike, but that comes too late for the Vanity Fair Oscar Party.

(Photo: Reuters)