| Sumario: | The coming year is likely to return the financial affairs of Time Warner, the media conglomerate formed by the 1989 merger of Time and Warner, to the headlines. Time Warner, the world's largest media group, with 1991 sales of $12 billion, is investing millions to turn its cable-TV systems into electronic highways to the home that could someday deliver everything from telephone services to computer programs or movies on demand. Major deals loom with media firms or those in such high tech industries as computers or telecommunications. Although the swirl of activity will be impressive, it will not necessarily show that the merger is a success. In the 3 years since the merger, the company has likely lost a total of $2 billion. Moreover, despite owning some of entertainment's best-known names, Time Warner has yet to prove that it made sense to assume billions of dollars in debt just to put them under one roof. Some issues Time Warner must address are discussed.
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