Waning Profits for Time Warner

Time Warner Inc., the world's largest media conglomerate, saw a big profit gain last year after selling AOL's European online access business. But, as they say, what goes up...

According to The Sentinel online news source, the corporation reported a 41 percent decline in the fourth-quarter profits. Jeff Bewkes, who became CEO at the beginning of the year, has suggested selling more of their 84 percent owned cable TV subsidiary, which is the largest part of the company. Time Warner owns New Line Cinema, HBO, CNN, TBS, and of course, Warner Bros., which all have stakes in video entertainment for cable TV.

Actually, Time Warner's movie and TV production business itself had a strong quarter, with Will Smith's I Am Legend setting a record for December film openings.

The future of AOL, on the other hand, is in danger. Dial-up internet connections are dying out as people shift to high-speed service from other phone or TV companies. Bewkes hopes to separate the dial-up access business of AOL from its growing business in online advertising. The company has already begun to change its business model with this in mind.

Despite different fluctuations of profit in the various businesses owned by Time Warner, this year's net income was reported to be $1.03 billion, or 28 cents per share. In the same period last year, the income was $1.75 billion, or 44 cents per share.