Happier numbers will presumably be tossed about on Wednesday at an analysts' meeting hosted by AOL Time Warner (AOL) following the company's first post-merger earnings report. The tone is expected to fall somewhere between a love-in and a coronation — analysts who track the stock can't get enough of the expected merger synergies, potential economies of scale and the sheer quantity of revenue streams shielding AOL from the severe advertising downturn now underway.
What has head honcho Steve Case done recently to earn such adulation? Ordered layoffs, announced a $5 billion share-repurchase program and set in motion plans to issue up to $10 billion in new equity should AOL decide to do a bit more shopping. The layoffs are part of $1 billion in savings he has promised to extract from his minions this year. The rest of the short-term blueprint will be laid out Wednesday. Anticipation is running so high that one otherwise duly impressed analyst is warning of a sell-off simply because the happy occasion would remove a "short-term catalyst" for a stock that has risen 57% this year.
The unasked question: Can AOL, whose experience with content before the merger was largely limited to syndicating work produced by others to its captive audience, preserve the long-term appeal of such flagship media and entertainment brands as Time, CNN and Warner Brothers?
The comforting answer: Anyone who can persuade 27 million people to cough up $21.95 a month for Internet access available for much less elsewhere largely on the strength on a cuddly Web interface knows a thing or two about infotainment.
What has head honcho Steve Case done recently to earn such adulation? Ordered layoffs, announced a $5 billion share-repurchase program and set in motion plans to issue up to $10 billion in new equity should AOL decide to do a bit more shopping. The layoffs are part of $1 billion in savings he has promised to extract from his minions this year. The rest of the short-term blueprint will be laid out Wednesday. Anticipation is running so high that one otherwise duly impressed analyst is warning of a sell-off simply because the happy occasion would remove a "short-term catalyst" for a stock that has risen 57% this year.
The unasked question: Can AOL, whose experience with content before the merger was largely limited to syndicating work produced by others to its captive audience, preserve the long-term appeal of such flagship media and entertainment brands as Time, CNN and Warner Brothers?
The comforting answer: Anyone who can persuade 27 million people to cough up $21.95 a month for Internet access available for much less elsewhere largely on the strength on a cuddly Web interface knows a thing or two about infotainment.
