In a recent issue of Business Week, Editor-in-Chief of the magazine, Stephen J. Adler sat down with Time Warner Chairman and CEO, Richard D. Parsons. When asked why the market is not happy with Time Warner at the moment, Parsons answer was:
"It's less specific to Time Warner than it is to our sector. Markets cannot deal with uncertainty, and there is alot of uncertainty around the future prospects for the old media businesses. How are they going to fare and grow in this new digital age? Will piracy hollow out the margins in the content business? The market is saying, 'Right now we don't know, so we're staying away.'"
Nothing in this world is certain, especially business. As volatile as all markets are, I don't think it's an issue of uncertainty. People know that business is uncertain.
So, really, why is the market not happy with Time Warner? Could it be that they merged with AOL? Perhaps so. I don't think there are too many AOL fans out there. (And if you are, I'd definitely like to know why!)
They went on to discuss why the stock of the company has become stagnant and other things unrelated to business. It was quite interesting to me why they didn't include any discussion (the article was edited) about customers and any plans to better the company's services.
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