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Jeff Bewkes’s Internal Memo on the AOL Spinoff

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Here’s Time Warner CEO Jeff Bewkes’s Memo on the AOL spinoff, which was approved by the media giant’s board last night and announced this morning.

BoomTown reported a lot of the deep details of the new structure of the online unit, which sweeps aside the previous one and includes a new venture unit.

Here’s the memo:

May 28, 2009

To: Time Warner Colleagues

From: Jeff Bewkes

Subject: Time Warner Announces Plan to Separate AOL

As you know, we’ve been working with AOL’s new management to move that company into the next phase of its evolution. To that end, we’ve been discussing the optimal ownership structure to enable AOL to fully realize its potential as a global Web services company. This morning, we announced that our Board of Directors has authorized management to proceed with plans for the complete legal and structural separation of AOL from Time Warner. Following the proposed transaction, which we aim to complete around the end of the year, AOL would be an independent, publicly traded company.

We believe that a separation will place both Time Warner and AOL in the best position to succeed, with greater operational and strategic flexibility. As an independent company, AOL should be a stronger competitor that is better able to deliver new and innovative products and services. At the same time, the separation will be another important step in the process we began last year of refocusing Time Warner to an even greater degree on our core content businesses.

For additional details about the proposed transaction, please click here to read the press release. I know you will have questions about this separation and how it may affect you and our company. We will provide more information as it becomes available over the coming months.

In the meantime, I’d like to thank the management and employees of AOL for the many contributions they have made, and continue to make, to our company. I’d also like to thank all Time Warner employees for your hard work and dedication. We’re making great progress toward our goals of building Time Warner into the world’s leading content company and improving our stockholders’ returns. With your continued support, I’m confident we have a bright future.

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  • No translation? I like those.

    Well, nothing that anyone (still) involved with these companies say can be taken very seriously considering the enormous amount of blowage (as in they blew it) that has occurred since the merger. Apparently only US car companies and our federal government can throw value away so efficiently. Too bad for the companies, combined are not that they don't fall into the "too big to fail" category. They shan't be missed.
  • Sam Harrison
    translated here...

    May 29, 2009

    To: Time Warner Colleagues

    From: Jeff Bewkes

    Subject: Time Warner Announces Plan to Separate AOL, part 2

    Sorry, I had too much wine last night at D7 and was thinking I had to be nice.

    Anyway, the morning after and it's time for the hard truth:

    Steve Case and Gerald Levin were wrong. AOL and Time Warner made about as much sense as Britney Spears and Clay Aiken hooking up.

    Now I'm trying to salvage this decade-long disaster and it ain't easy being Jeff.

    But Jeff now is kicking names and taking you know what.

    Bottom line: we're keeping platform A and ditching AOL.

    Maybe Steve Case will buy it back?

    Revolution anyone?

    Jeff
  • cesar bustillo
    Mr. Jeff Bewkes have many challenges ahead to clean up the house because of corporate irresponsability mainly in CNN. He should be aware by now of the mistreatment an employee who was dying got in CNN.

    CNN: MISTREATMENT AND DEATH OF EMPLOYEES

    Salvadoran journalist Mario Vela passes away 12 days after being dismissed by CNN. The organization AGACAMT denounces the hostile attitude of CNN towards ill employees. Jose Ramon Cotti, Puerto Rican journalist dismissed by CNN, remains in a hospital after months of pain.

    Atlanta (23 March 2009). – Salvadoran journalist Mario Vela passed away 12 days after CNN dismissed him. The company fired this worker despite the knowledge of the seriousness of his illness. Mr. Vela had been several months agonizing in Washington after his doctors declared there was no hope to save his life.

    Mario Vela and his family underwent the pressure imposed by CNN in his last days when receiving a document in which their rights of denunciation were questioned and conditioned to the signing of a humiliating severance package.

    CNN served notice to Mr. Vela via mail explaining that he no longer was to have his disability benefits and the medical insurance from the company.

    Eva Ventín, president of AGACAMT, the Galician Association Against Moral Harassment at the Workplace, denounces the hypocritical attitude of CNN, that, after putting Mr. Vela in the street, sent the Vice-president of CNN Spanish, Cristopher Crommett, to this employee’s funeral to sing a song and to deliver a pitiful donation.

    Relatives and friends of Mario Vela were themselves forced to organize a fundraising concert to collect money to pay for his medical treatment.

    It is difficult to think that a powerful and multi-millionaire company like CNN, that in spite of the world’s economy crisis have announced economic gains, gets to mistreat its professionals and families”.

    Mario Vela who passed away at age 34, was named by the mayor of Washington DC “the journalist of the year of 2007” recognition who was emphasized by his support to the Hispanic community and towards the under-privileged.

    With more than 10 years of experience Mario Vela was news director of Mega Communications and Radio Capital 730 in DC. Vela worked for Channel 30 of Univisión and Radio World in Maryland.

    AGACAMT wants to bring to the world’s attention other serious cases of labor harassment at CNN as in 2003 the local press of Atlanta related this network with the depression of a journalist who committed suicide. (see original editorial of the Mundo Hispanico about former news director Abel Dimant).

    The complaints of labor abuses and irregularities had been communicated to Mr. Jim Walton, the President of CNN, but there are no answers neither solutions that protect the victims.

    AGACAMT denounces that “this it is not the unique case of a journalist dismissed by CNN in a serious condition”. News anchor Jose Ramon Cotti remains in a hospital in Georgia after several months of pain.

    The Puerto Rican journalist also was dismissed by CNN while on disability awaiting a delicate heart operation.

    CNN brought Mr. Cotti and his wife to Atlanta from New York 9 years ago and the company has now totally forgotten this family, not even making a phone call to inquire about its employee’s condition after double bypass surgery and leg amputation and also after Mrs. Cotti’s hospitalization with health problems including stress related condition.

    We communicated Mr. Walton of the above again with no responses.
    This prestigious New York radio journalist, recipient of Several prizes including two awards from ACE. (Award of creative excellence) is just another one of the numerous victims of the dramatic crisis that shakes CNN.

    http://www.youtube.com/watch?v=CV_ngsdcwFo
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Kara Swisher started covering digital issues for The Wall Street Journal's San Francisco bureau in 1997 and also wrote the BoomTown column about the sector. With Walt Mossberg, she co-produces and co-hosts D: All Things Digital, a major high-tech and media conference. Read more »

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