Filed under: Earnings reports, Microsoft (MSFT), Yahoo! (YHOO), Time Warner (TWX)

Time Warner Inc.’s (NYSE: TWX) new Chief Executive Jeffrey Bewkes will have plenty to talk about when the world’s largest media conglomerate — and parent of BloggingStocks — reports fourth quarter results tomorrow.

The results themselves aren’t going to be anything spectacular. Analysts expect earnings of 29 cents on revenue of $12.64 billion, according to Thomson Financial. As usual, the focus will be on AOL, in particular how much gains in advertising offset the declines in the dial-up business. Also, the company will need to detail its plans for the cable business which may be hurt by an economic slowdown. The future of the publishing business also remains in doubt as advertisers continue to flee print for online media.

Microsoft Corp.’s (NASDAQ: MSFT) $44.6 billion bid for Yahoo Inc. (NASDAQ: YHOO) only adds to the confusion. Will investors give Bewkes enough time to transform AOL’s business to an ad-supported model? The strategy is the correct one though it was initiated about two years too late. But given the premium that Microsoft is offering for Yahoo, investors are bound to pressure Bewkes to make a similar deal for AOL, which today bought the online marketing company buy.at.

Continue reading Time Warner’s day of reckoning nears

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This entry was posted on Tuesday, February 5th, 2008 at 11:46 pm and is filed under Stocks Money News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.