Time Warner is a media and entertainment company whose business includes interactive services, cable systems, filmed entertainment, television networks and publishing. Time Warner classifies its business interests into five segments: AOL, Cable, Film Entertainment, Publishing and Networks. The AOL business consists of worldwide Internet services, music and high-speed broadband services. The Cable business has approximately 13 million basic cable television subscribers. The Film Entertainment segment produces and distributes motion pictures, television shows, animation, home video products and licenses rights to programmes and characters. The Publishing segment publishes 130 magazines including Time, People, Sports Illustrated and Fortune. Its Networks business consists of cable networks, pay television programming services, a broadcast television network, and sports franchises.

KHC’s interest in Time Warner is the end result of a market purchase of a 5 percent interest in Netscape in 1997 for $145 million, followed by the subsequent sale of Netscape to AOL and the merger of AOL into Time Warner. KHC believed that Netscape had significant potential for growth in the media and entertainment sectors. The investment was KHC's initial entry into the technology field, before internet stocks became overvalued. In the first 16 months after the investment, Netscape yielded an internal rate of return of 90.6 percent per annum, with the price of Netscape shares increasing due to increasing demand for internet stocks and the announcement of AOL's bid. Additional investments were made in Time Warner shares in 2001 and 2002. 

KHC intends to continue to explore investment opportunities with Time Warner. In particular, Management believes that there is potential for the KHC’S to act as Time Warner's regional partner in Middle Eastern media investments.