America Online Inc. and Time Warner Inc. chiefs Thursday introduced the management team that will direct the operations of the merged companies. American Online (AOL) restructured its assets to capitalize on the media and communications opportunities the completed deal offers.

Steve Case, AOL chairman and chief executive officer and Gerald M. Levin, Time Warner (TWX) chairman and chief executive announced the merged company's management team and organization plans, which will take effect when the merger closes in the fall.

Case will be named AOL Time Warner's chairman of the board while Levin retains his chief executive officer status.

Case said that the revamped company organizational structure would best use the combined talents of the two companies while it integrated its converging Internet, media and communications businesses, as well as position AOL Time Warner to capitalize quickly on opportunities presented by the Internet's next growth spurt.

"Today's announcement marks a very significant milestone for AOL Time Warner. We are moving quickly to ensure that AOL Time Warner fulfills its unique potential as the first media and communications company truly the Internet," Case said.

"With this focused organization and world-class management team, we will be perfectly positioned to capitalize on the enormous opportunities in the converging Internet, communications and media industries," Case added. "As the Internet moves into the next stage of its global development, we believe AOL Time Warner's unmatched content, brands and consumer relationships will be keys to our success."

AOL Time Warner will be organized around its core growth drivers, including subscription services, advertising and commerce, and content. Case contends that the structure would maximize the value of the company's unique combination of brands and other assets, and to drive future growth.

Levin said the merger is on track to close this fall and that AOL Time Warner will be able to deliver superior benefits to both consumers and shareholders while maintaining its journalistic integrity.

"We will make the most of the talented people across the company, with a streamlined and empowered organization designed to ensure the highest level of execution," Levin added. "At the same time, we are absolutely committed to maintaining the most rigorous journalistic integrity and creative excellence, as we have throughout our history."

Bob Pittman, currently AOL president and chief operating officer will share co-chief operating officeer responsibilities with Time Warner President Dick Parsons. Pittman will take on overseeing subscription services, as well as advertising and commerce businesses segments. Parsons will focus on the merged company's content businesses in film, television production, music and books, as well as legal and personnel development functions. Both will report to Levin.

"Our combined company will have an unsurpassed ability to drive the development of the interactive medium while delivering a strong, consistent earnings performance," Case said. "Jerry and I are confident that Bob Pittman and Dick Parsons will provide the leadership for AOL Time Warner to become the most valuable and respected company in the world."

Ted Turner, currently Time Warner's ViceChairman, will become maintain the same title with AOL Time Warner and will assume the additional role as a senior advisor.

Barry Schuler, presently AOL interactive services president will become chairman and chief executive officer of America Online Inc. and assume Pittman's current responsibilities.

Time Warner Cable's Joseph J. Collins, Time Inc.'s Don Logan, Home Box Office's Jeffrey L. Bewkes, Turner Broadcasting System's Terrence F. McGuirk, and The WB Television Network's Jamie Kellner chief executive officers will report with Schuler to Pittman.

David M. Colburn, currently President of America Online Business Affairs, will become President of Business Development for the new company's subscription services and advertising and commerce businesses.

Warner Bros.'s Barry M. Meyer, New Line Cinema's Robert Shaye, Warner Music Group's Roger Ames, and Time Warner Trade Publishing's Laurence J. Kirshbaum, chief executive officers will report to Parsons.

Paul T. Cappuccio, currently AOL senior vice president and general counsel is to become Executive Vice President and General Counsel of AOL Time Warner.

Levin said the merged company would step outside of the box to historically draw from the mega-company's ability to collaborate on fulfilling its aspirations.

"As we enter the Internet Century, the accelerating convergence of both technologies and markets makes it imperative for AOL Time Warner to step beyond historical lines of organization in order to best serve our customers and shareholders," Levin said. "Just as Steve has focused on making teamwork and collaboration across America Online one of his top priorities, we are committed to the same operating principles at the new company."

Case concluded that it does not matter where the content originates, the merged AOL Time Warner remains committed to its customer base.

"To best serve our customers, we are committed to offering a broad choice of the best content available, regardless of who produces it, and to distributing our own content as widely as possible on a variety of platforms, and this new organization reflects that commitment," Case said.


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