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

4-Traders Homepage  >  Equities  >  Nyse  >  Time Warner    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 CEST

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
04:26p AT&T : unclear what final merger conditions Justice Department will seek
02:10p AT&T : Sen. Franken Leads Coalition of Senators in Pressuring Justice Department..
02:10p AT&T : Sen. Warren Joins Coalition of Senators in Pressuring Justice Department ..
10:25a TIME WARNER : Democratic Senators Warn Against AT&T-Time Warner Merger
07:23a AT&T : Sen. Markey Joins Franken Coalition of Senators in Pressuring Justice Dep..
06/21 AT&T : Sen. Franken Leads Coalition of Senators in Pressuring Justice Department..
06/21 AT&T : Markey Joins Franken Coalition of Senators in Pressuring Justice Departme..
06/21 AT&T : Blumenthal Joins Coalition of Senators in Pressuring Justice Department t..
06/21 AT&T : Warren Joins Coalition of Senators in Pressuring Justice Department to Re..
06/21 AT&T : Cantwell Joins Coalition of Senators Pressuring Justice Department to Rej..
More news
Sector news : Movie, TV Production & Distribution
06/19DJTWENTY FIRST CENTURY FOX : Fox to Launch New Six-Second Ad Format for Digital Co..
06/14 Australian TV station Ten in administration after Murdoch-led backers quit
06/14 Australian TV station Ten in administration after Murdoch-led backers quit
06/14 LACHLAN MURDOCH : Australian TV station Ten in administration after Murdoch-led ..
06/09DJSKY : Shares Fall as U.K. Election Adds Uncertainty to Fox Bid
More sector news : Movie, TV Production & Distribution
News from SeekingAlpha
07:30a AT&T : Time Warner Deal Counter-Intuitively Lowers Risk For Current Shareholders
06/21 AT&T : A High Dividend Yield But Not Without Risk
06/21 AT&T About To Break Down? Where To Put A Sell-Stop
06/21 AT&T : Taking A Closer Look At The Pending Time Warner Acquisition
06/20 AT&T : Hold 'Em, Fold 'Em Or Buy 'Em?
Financials ($)
Sales 2017 30 907 M
EBIT 2017 8 110 M
Net income 2017 4 863 M
Debt 2017 19 334 M
Yield 2017 1,67%
P/E ratio 2017 16,12
P/E ratio 2018 15,17
EV / Sales 2017 3,12x
EV / Sales 2018 2,90x
Capitalization 76 972 M
More Financials
Duration : Period :
Time Warner Technical Analysis Chart | TWX | US8873173038 | 4-Traders
Full-screen chart
Technical analysis trends TIME WARNER
Short TermMid-TermLong Term
Technical analysis
Income Statement Evolution
More Financials
Mean consensus OUTPERFORM
Number of Analysts 30
Average target price 106 $
Spread / Average Target 6,8%
Consensus details
EPS Revisions
More Estimates Revisions
Jeffrey 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 Lead Independent Director
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
TIME WARNER2.82%77 181
TOHO CO LTD5.45%5 924
More Results