Providence taps Parsons for top post

Citigroup chairman named senior adviser

By JILL GOLDSMITH

Parsons

Former Time Warner chairman and chief executive Richard Parsons has become a senior adviser to Providence Equity Partners, the global investment heavyweight with stakes in companies from Hulu to Univision, Warner Music Group and MGM.

Some, like Warner Music, have proved immensely lucrative.

The firm was also part of the Sony-led consortium that acquired MGM in 2005 for about $5 billion, outbidding Time Warner, which was led by Parsons at the time. The failure to win the battle for the Lion may have proved a blessing in disguise for TW. The investment -- Providence has a 29% stake -- turned out badly, as the studio has struggled to find its footing. Its owners recently pushed aside their handpicked CEO, Harry Sloan.

Providence said in a statement that Parsons, 61, will continue to serve as chairman of Citigroup, which he joined in February, and as a director of Estee Lauder Cos.

Providence, which manages assets worth $22 billion, and works across industries and around the world, led the rush of private equity investment firms into media and communications. Enabled by streams of easily available cash, PE firms snapped up just about every showbiz asset to hit the block but stalled in recent years as the global economic crisis froze financial markets.

The association with Parsons follows a tradition of private equity firms often hiring high-ranking and politically connected executives to further their investments. 

Parson, who has long experience in the financial and entertainment world, will advise Providence on new investment opportunities and on certain of its existing assets, the firm said.

Parsons joined Time Warner as president in 1995 and was CEO 2002-07. He also served as chairman of the board 2003-08. He took the reins at Time Warner at a particularly sensitive time when its stock price, balance sheet and reputation had been sullied by the disastrous merger with AOL. He's personable and low key, and his acknowledged people skills were credited with improving morale at the company and getting TW back on track.

"Dick is not only a great person but also a wise leader with broad industry and civic experience," said Providence CEO Jonathan Nelson. "He will bring to bear his deep knowledge in the media industry to assist us with current investments and help identify new opportunities and corporate initiatives."