Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

4-Traders Homepage  >  Equities  >  Nyse  >  Time Warner Inc    TWX

News SummaryMost relevantAll newsSector newsTweets 

Exclusive: Time Warner kicks off possible sale of NY headquarters

share with twitter share with LinkedIn share with facebook
share via e-mail
01/31/2013 | 02:17am CET

Time Warner Inc is considering selling its New York headquarters and has asked real estate brokers to evaluate the building's value, in a move that could see it relinquish one of the last vestiges of its disastrous merger with America Online, two sources said.

One source said on Wednesday that the company could still hang on to its portion of the Time Warner Center, a complex that Chief Executive Jeff Bewkes once called an "indulgence."

The industry sources did not want to be named because they were not authorized to discuss the matter.

The company's headquarters is part of the larger Time Warner Center, which the company now known as AREA Property Partners and Related Cos finished in 2004.

Time Warner's 1.1 million square-foot (102,193 square-meter) headquarters could command a price tag of more than $1 billion.

"If they decide to sell that vacant block you get pricing approaching or surpassing $1,000 a square foot," said Dan Fasulo, managing director of Real Capital Analytics, a real estate research firm.

The developers began building the complex in Manhattan's Columbus Circle neighborhood soon after the media company announced its plan to combine with America Online in 2000. The development was originally to be known as the AOL Time Warner Center, but "AOL" was dropped by the time it opened in 2004.

The company's headquarters are in the south tower, which is topped with residential condominiums. The other tower houses condominiums and the Mandarin Oriental Hotel. They are connected by an upscale shopping mall.


All totaled, Time Warner owns or occupies space in 15 buildings in the New York metropolitan area, including 10 in Manhattan. The $47 billion media giant owns the Warner Brothers movie studio, cable news channel CNN, premium TV service HBO, Turner Broadcasting and Time Inc.

Many media companies in New York have been on the move or plan to do so within the next couple of years. The most notable is Conde Nast, which plans to consolidate its operations and move to One World Trade Center in 2014.

Other companies have sold the real estate they own to raise cash. On January 17, Japan's Sony Corp, which has a major U.S. film and TV studio, said it would sell its U.S. headquarters building in New York City for $1.1 billion, the highest price paid for a single U.S. office building in two years.

Time Warner has been evaluating its real estate needs for at least a year and hopes to finalize a plan by the end of 2013, a source said.

The company is considering a wide range of options, including hanging on to the headquarters, selling the space and leasing it back, moving more employees into the headquarters and closing other New York offices, or moving out entirely, the source said.

The amount the headquarters would fetch would depend on what Time Warner decides to do, Real Capital's Fasulo said.

"There's a difference in value in sale-leaseback or whether they just vacate the property," he said.

If Time Warner intends to lease it back, then the value would be linked to rent and the length of lease that Time Warner is willing to commit to, Fasulo said.

The conglomerate has been making changes to some of its most high profile divisions in recent weeks.

It is currently overhauling ratings-starved news channel CNN under new leadership. On Wednesday, Time Inc, the magazine unit of Time Warner, said it was cutting about 500 jobs, about 6 percent of its total staff.

(Reporting by Ilaina Jonas and Liana Baker in New York; Editing by Lisa Von Ahn, Steve Orlofsky and Phil Berlowitz)

By Ilaina Jonas and Liana B. Baker

Stocks treated in this article : SONY CORPORATION, Time Warner Inc.
share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on TIME WARNER INC
02/21 AT&T : Time Warner Merger Will Benefit Consumers
02/20 TIME WARNER INC. (NYSE : TWX) Files An 8-K Submission of Matters to a Vote of Se..
02/17 AT&T : Time Warner shareholders approve AT&T merger
02/17 AT&T : Lee, Klobuchar Send Letter to Attorney General on Proposed Merger of AT&T..
02/17 AT&T : Sens. Lee, Klobuchar Send Letter to Attorney General on Proposed Merger o..
02/17DJTIME WARNER : Jared Kushner Delivers Critique of CNN to Time Warner Executive
02/16 TIME WARNER : shareholders vote to approve AT&T merger
02/16 TIME WARNER : shareholders OK AT&T merger
02/15 TIME WARNER : Shareholders Approve Merger with AT&T
02/13DJStartup Backed by Spielberg and Studios Seeks to Create VR Experiences for Ma..
More news
Sector news : Movie, TV Production & Distribution
02/18DJVIACOM : Paramount Chief Grey To Leave Top Job -- WSJ
02/18DJVIACOM : Brad Grey to Leave CEO Post at Viacom's Paramount Pictures, Sources Say..
02/18DJVIACOM : Brad Grey to Leave CEO Post at Viacom's Paramount Pictures, Sources Say..
02/18 VIACOM : Paramount CEO Grey to depart as soon as next week - sources
02/17DJVIACOM : Brad Grey to Leave CEO Post at Viacom's Paramount Pictures, Sources Say
More sector news : Movie, TV Production & Distribution
News from SeekingAlpha
02/21 Life As An Enemy Of The People
02/21 Don't Be Fooled - AT&T Holds All The Cards
02/20 Tracking John Paulson's Paulson & Company Portfolio - Q4 2016 Update
02/19 Tracking David Einhorn's Portfolio - Q4 2016 Update
02/17 AT&T promises senators not to withhold content in a Time Warner merger
Financials ($)
Sales 2017 30 917 M
EBIT 2017 8 154 M
Net income 2017 4 650 M
Debt 2017 19 056 M
Yield 2017 1,74%
P/E ratio 2017 16,26
P/E ratio 2018 14,78
EV / Sales 2017 3,02x
EV / Sales 2018 2,80x
Capitalization 74 352 M
More Financials
Duration : Period :
Time Warner Inc Technical Analysis Chart | TWX | US8873173038 | 4-Traders
Full-screen chart
Technical analysis trends TIME WARNER INC
Short TermMid-TermLong Term
Technical analysis
Income Statement Evolution
More Financials
Mean consensus OUTPERFORM
Number of Analysts 33
Average target price 105 $
Spread / Average Target 9,1%
Consensus details
EPS Revisions
More Estimates Revisions
Jeff L. Bewkes Chairman & Chief Executive Officer
Howard M. Averill Chief Financial Officer & Executive Vice President
Mitchell A. Klaif Chief Information Officer & Senior Vice President
James L. Barksdale Independent Director
Robert Charles Clark Independent Director
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
TIME WARNER INC-0.11%74 352
TOHO CO LTD0.15%5 514
More Results