KHC investments begin: 1997
Based: New York, New York, USA
Awards & Medals
2012 - HBO Receives 81 Primetime Emmy Nominations, the Most of Any Network this Year; Hemingway & Gellhorn Leads all HBO Programming with 15 Nominations
2012 - Time Inc. Awarded "Magazine of the Year" by National Magazine Awards
2012 - Warner Bros. UK Delivers Record Box Office Grosses to be Crowned UK's Number One Film Studio for Second Consecutive Year
2011 - LIFE.com won a People's Voice Webby Award for Best Visual Design Aesthetic.
Kingdom Holding Company has a substantial shareholding in Time Warner, the world’s largest media company.
KHC’s interest in Time Warner results from a 1997 USD 145m market purchase of a 5% interest in the pioneering Internet company Netscape. Netscape was subsequently sold to AOL which then merged with Time Warner. KHC had identified home and business Internet services as an area of extraordinary opportunity, and the Netscape position was KHC’s first entry into the technology sector, long before Internet-based stocks became unsustainably overvalued.
Within the first sixteen months of the initial investment, Netscape yielded an extraordinary internal rate of return of 90.6% per annum, with the company’s shares skyrocketing in value due to the surging demand for Internet stocks and announcement of AOL’s proposed bid. KHC deepened its relationship with Time Warner in 2001 and 2002 with the purchase of additional share holdings. AOL and Time Warner separated in 2009.
The relationship between KHC and Time Warner remains extremely strong, with the management of Time Warner believing that potential exists for KHC to act as the company’s regional investment partner for the Middle East.
Time Warner operates such globally known brands as Warner Brothers, CNN, Time Magazine, HBO and New Line Cinema. Its interests range from cable and pay television to sports franchises. The company, a global leader in media and entertainment, with businesses in television networks, film and TV entertainment and publishing, uses its industry-leading operating scale and brands to create, package and deliver high-quality content worldwide through multiple platforms and distribution outlets.
The networks business consists of cable networks, pay television programming services, a broadcast television network, and a host of valuable sports channel franchises. The film entertainment business produces and distributes motion pictures, television shows, animation, home video products and licensing rights for thousands of programs and characters. The publishing arm of Time Warner publishes over 130 magazines including Time, People, Sports Illustrated and Fortune Magazine.
Time Warner's businesses strive to gain competitive advantage from opportunities for constructive collaboration. The company is a longtime innovator in technology, products and services. Its digital initiatives reinforce the company's industry-leading brands on all platforms with a focus on growth, engagement and monetization.