Time Warner Inc chairman and chief executive Jeff Bewkes today faced the unenviable task of convincing investors the decision to turn down $80bn of Rupert Murdoch's money was a good one.
Murdoch had wanted to merge Time Warner with his Twenty First Century Fox company, but the Australian's $80bn buyout offer was rejected by the American company.
Bewkes insisted the company was not deviating from its original plan for growth, and forecast adjusted earnings per share of close to $6 by 2016 and more than $8 by 2018.
Last year Time Warner had adjusted earnings per share of $3.51.
Following Murdoch ending his pursuit in the company in August, Time Warner’s share price crashed over 12 per cent.
Yet Bewkes’ message clearly resonated with investors today,as the media corporation's share price rose over three per cent on the New York Stock Exchange in early morning trading.
The fundamental plan is to invest in great content, leverage technology, expand internationally and efficiently deploy capital.
Following Bewkes at the Time Warner investors’ presentation today, HBO CEO Richard Plepler revealed that the high-quality production house would be launching stand-alone over-the-top content service in order to make their shows accessible to a wider audience.
HBO is one of the most widely-recognised Time Warner subsidiaries which also includes Warner Bros., CNN, Cartoon Network and New Line Cinema.
In August the media giant reported higher-than-expected quarterly profits of $840m.