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CNN Live At Daybreak
Case Says He Will Step Down as AOL Chairman
Aired January 13, 2003 - 05:09 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: A high profile corporate shakeup right in our own backyard. Just two short years ago, Steve Case announced the largest corporate merger in history, the $106 billion marriage of AOL and Time Warner, which, of course, is the parent company now of CNN.
Now, Case says he will step down as AOL chairman in May.
CNN's Greg Clarkin has details for you.
(BEGIN VIDEOTAPE)
GREG CLARKIN, CNN CORRESPONDENT: Steve Case had fended off many challenges to his power in the recent months, but at this point Case giving in, resigning his role as chairman of America Online Time Warner. That would be effective May at the company's annual shareholders meeting.
(voice-over): Now, Case had become something of a poster child for the failed and unfulfilled promises of this merger. Also, he had become something of a poster child for this stock, which has seen significant losses, AOL shares down 54 percent in the last year alone. Case, in a statement released tonight, saying that stepping down is in the best interests of the company. He went on to say this company does not need distractions at this critical time as it tries to rebuild itself.
Now, America Online with no shortage of major issues. There are still two government investigations ongoing. The Department of Justice has one. The Securities and Exchange Commission has the other. Both of those looking into accounting issues at America Online.
So, again, Case stepping down before the annual shareholders meeting in May. It was felt that a lot of his opponents may mount a more sustained challenge to him leading up to that shareholders meeting in May when the shareholders will have a chance to vote on Case's role. Case saying that he would be stepping down now so as not to become a distraction to the company.
(on camera): Once again, Steve Case leaving effective May as chairman of AOL Time Warner.
Greg Clarkin, CNN Financial News, New York.
(END VIDEOTAPE) COSTELLO: And about two hours from now, Steve Case will be on AMERICAN MORNING WITH PAULA ZAHN to talk about his decision to step down. And you can see that interview at 7:30 Eastern this morning.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
Aired January 13, 2003 - 05:09 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: A high profile corporate shakeup right in our own backyard. Just two short years ago, Steve Case announced the largest corporate merger in history, the $106 billion marriage of AOL and Time Warner, which, of course, is the parent company now of CNN.
Now, Case says he will step down as AOL chairman in May.
CNN's Greg Clarkin has details for you.
(BEGIN VIDEOTAPE)
GREG CLARKIN, CNN CORRESPONDENT: Steve Case had fended off many challenges to his power in the recent months, but at this point Case giving in, resigning his role as chairman of America Online Time Warner. That would be effective May at the company's annual shareholders meeting.
(voice-over): Now, Case had become something of a poster child for the failed and unfulfilled promises of this merger. Also, he had become something of a poster child for this stock, which has seen significant losses, AOL shares down 54 percent in the last year alone. Case, in a statement released tonight, saying that stepping down is in the best interests of the company. He went on to say this company does not need distractions at this critical time as it tries to rebuild itself.
Now, America Online with no shortage of major issues. There are still two government investigations ongoing. The Department of Justice has one. The Securities and Exchange Commission has the other. Both of those looking into accounting issues at America Online.
So, again, Case stepping down before the annual shareholders meeting in May. It was felt that a lot of his opponents may mount a more sustained challenge to him leading up to that shareholders meeting in May when the shareholders will have a chance to vote on Case's role. Case saying that he would be stepping down now so as not to become a distraction to the company.
(on camera): Once again, Steve Case leaving effective May as chairman of AOL Time Warner.
Greg Clarkin, CNN Financial News, New York.
(END VIDEOTAPE) COSTELLO: And about two hours from now, Steve Case will be on AMERICAN MORNING WITH PAULA ZAHN to talk about his decision to step down. And you can see that interview at 7:30 Eastern this morning.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
