Jerry Levin Steps Down - Time Warner Legacy

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Jerry Levin, a pivotal figure in Time Warner's legacy, steps down at 62, marking a transformative shift in media leadership.

Jerry Levin, at the age of 62, has decided to step down from his position at one of the world's largest media conglomerates, leaving behind a legacy that is deeply intertwined with Time Warner. Over the years, he has meticulously built this empire through a series of strategic deals, much like Sumner Redstone with Viacom and Rupert Murdoch with News Corp. However, unlike these executives, Levin is willing to relinquish control of his corporate throne.

Despite the January merger with America Online and Steve Case taking the helm as chairman, Levin was still seen as the primary force behind the company’s strategic direction and decision-making. Now, it seems he is ready to let others take over the management of the vertically integrated entertainment powerhouse he created.

Levin's friends were both surprised and somewhat resigned to his decision. They suggest that the events of September 11, 2001, and the lingering impact of his son's murder in 1997, played a significant role in his decision. As he grew increasingly impatient with the corporate battles, he chose to move on.

Unlike many media moguls who might seek other corporate ventures or public service, Levin is more inclined towards intellectual pursuits. He takes his writing seriously and, as a passionate film enthusiast, may even consider getting involved in film production.

One of Levin's most notable contributions was his focus on acquiring and retaining cable systems. While others emphasized content, Levin bet on the consolidation of the "pipes" to people's homes. With the rise of internet content and video-on-demand, he believed this strategy would lead to substantial corporate success. He also played a crucial role in the growth of HBO.

Perhaps his most significant achievement was steering Time Inc. into a 1990 merger with Warner Communications. A few years later, he orchestrated the acquisition of Ted Turner's Turner Broadcasting, a move that was essential for the success of the previous Time Warner merger.

The mega-merger with AOL was announced in January 2000 but took a year to clear regulatory and shareholder hurdles. There was speculation that Levin might retire after his son's murder, but he continued to build the empire, including a bid for AT&T's massive cable-systems unit.

Warner Bros. is on track to win the box office crown for the first time in eight years, largely due to the success of "Harry Potter and the Sorcerer's Stone," which is set to become one of the highest-grossing films of all time.

Levin's strategic moves have caused the company's stock to fluctuate, but on the day of his retirement announcement, investors reacted positively, allowing the stock to rise by $1.08, or 3%, to close at $35.83. The Dow Jones Industrial Average also saw a 2% increase to 10,114.

Frank Biondi, a partner at investment firm Waterview Partners and a former top executive at Universal Studios and Viacom, commented, "He’s really one of the giants of the past in this new-media era, so it’s kind of a sad moment to see him step down. He really has accomplished an enormous amount."

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