Maverick Turner rides off
Frustrated mogul had helped oust other execs
|
When CNN was merged into Time Warner, Turner said he endorsed the deal because he aspired "to be bigger than the Empire State Building."
When Time Warner and CNN then merged with AOL, Turner said it was better than sex.
Maybe it didn't turn out that way. Turner's approval of one mega merger after another ended up marginalizing the hyperbolic cabler. A brilliant career ran aground.
The news of Turner's plans to retire from all the tumult to pursue other interests came on the same day that the company offered Wall Street yet another demonstration of the financial damage wreaked on its balance sheet by the merger: a writeoff of $45 billion in goodwill value.
While pundits had been expecting two or three board resignations at the troubled conglom, Turner's exit came as a surprise. Some sources say that in the wake of Steve Case's announcement of his resignation, Turner may have coveted the chairmanship -- a position Parsons was voted into last week.
The feisty founder of Turner Broadcasting has been a vocal critic of the deal and had played the pit bull in ousting Levin, chief operating officer Bob Pittman and Case. Turner had been particularly frustrated with his increasingly marginalized role in the company's operations since January 2001, when he was effectively replaced as head of Turner Broadcasting System by Jamie Kellner.
"He'd been disengaged for quite a while, so his departure has more symbolic impact than operational," said Hal Vogel of Vogel Capital Management. "I think he was just disgusted with the whole situation," Vogel said, noting the most recent $45 billion writeoff. "It's shameful, really," he said of the unexpectedly large charge, which speaks volumes about the destruction in shareholder value. Turner, whose personal stake in the company lost more than 75% of its value, still holds some 122 million shares in the company.
Turner was a rumored opponent of a potential merger between CNN and ABC News, and his departure may facilitate the discussion. But at the same time, insiders at AOL TW say there are many more pressing issues at the conglom to worry about.
Turner was civil in his letter to Parsons, writing that he had "not come to this decision lightly. "This company has been a significant part of my life for over 50 years. I have the deepest respect for you, the senior management and my fellow members of the board. With this team in place, I am optimistic that the company will be able to move forward and reach its true potential."
Turner said he intends to devote more time, effort and resources to his philanthropic interests and "socially responsible business efforts.
"Ted's leadership role in the formation of global media in general and AOL Time Warner in particular is uniquely significant," said Parsons, who added that he would continue to rely on Turner's "wisdom and advice in the years to come."
(Craig Offman contributed to this story.)
