AOL's Case offers rosy outlook

Associated Press

NEW YORK — AOL Time Warner chairman Steve Case expressed confidence about the troubled media conglomerate's future yesterday, and indicated that he sees his role at the company continuing.

At an investment conference sponsored by Goldman Sachs, Case acknowledged the last year had been difficult, but said the company he helped create has the right mix of businesses to succeed — despite accounting questions at its America Online division and a struggling stock.

"I have tremendous confidence in AOL Time Warner and in our ability to be the leader," Case said. "Unstoppable consumer trends are moving our way, providing real opportunity for growth."

Case also sounded upbeat about his future at the company, though he did not address speculation that he is under pressure to resign.

"I'm a little more active now than I might have been in the first year of the merger because of the challenges the company faces now," Case said, adding that he is meeting weekly with America Online's new chief executive, Jon Miller, to help him understand the division and strategize.

Published reports have suggested some of AOL Time Warner's board members and largest shareholders, angry about the decline in stock price, want Case to leave. The company repeatedly has denied the rumors.

Honolulu-born Case, co-founder of America Online, was a primary architect of the AOL Time Warner merger in 2001.

He did not discuss specifics of the government investigation into accounting practices at America Online, other than to say that the company continues its internal review.

But he admitted the challenges are significant. He ranked the success of internal collaboration at AOL Time Warner at 5, on a scale from 1 to 10. Collaboration between divisions was a key selling point of the 2001 merger.

AOL Time Warner stock gained 23 cents to close at $11.93 yesterday on the New York Stock Exchange.