As of Monday, March 23rd, Time Warner has decided to invest $241.5 million in Central Media Enterprises which is a TV outlet in Europe. The company labeled CME is a broadcaster in Bulgaria, Croatia, and the Czech Republic and Time Warner is fortunate enough to hold a thirty-one percent stake in the company. The astounding amount of money that will be invested by TW will get them two seats on CME’s board.
With this newest decision, CME has also found a way to make a partnership with Time Warner Bro’s movie studio to launch and operate Warner-branded channels in the company’s areas. This channel will constantly run feature international films and television series. Thanks to the spinoff of the cable unit, time Warner is expected to receive $9.25 billion and will consider to acquire future international companies. CEO Jeffrey Bewkes released a statement on the acquisition in saying, “While the (Central European) region has been experiencing the impact of the global economic crisis, we believe CME is ideally positioned over the long term as Central and Eastern Europe returns to significant growth and the media sector in these countries continues to evolve.”
This once again demonstrates Time Warner’s ability to survive and succeed through the economic downturn that we are facing. With almost ten billion alone in expected television profit, they will make a ton more than that with their feature films that citizens are still flocking to see. Of course there is some risk in this partnership due to the overseas liability with CME. Considering they are now in a partnership, Time Warner now must focus on CME’s possible path to success as well with hopes that both sides are satisfied.
Adegoke, Yinka. "Time Warner Buys Stake in Central European media co." March 23, 2009.
http://www.reuters.com/article/americasDealsNews/idUSTRE52M2Y220090323
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