BUSINESSWEEK ONLINE : JANUARY 15, 2001 ISSUE
COVER STORY The Man Who Made Levin Look Good In the media business, where top executives are often afforded celebrity status, Time Warner Inc. (TWX) President Richard D. Parsons is the anti-mogul. For six years, Parsons, 52, steadfastly served Chairman Gerald M. Levin in a stealthlike manner. Behind the scenes, he has been a dealmaker and a peacemaker between fractious divisions. ''He is the least visible presence in any major media company, but he is the one who has been enormously valuable,'' says a management consultant who has worked with Parsons through the years. Given Parsons' style, it comes as no surprise that much of the focus on the AOL-Time Warner (AOL) merger has been paid to media darling Bob Pittman, the high-profile president of America Online Inc. and, in an earlier life, one of the creators of MTV. The two men will share the title of co-chief operating officer, but all indications are that Pittman will be first among equals. IRREPLACEABLE. That's if Parsons hangs around. The longtime Republican is being mentioned as a candidate for a post in George W. Bush's Administration, possibly the U.S. Trade Representative job. People who know Parsons say he believes public service is an important calling and that if offered the government position, he would consider it seriously. Time Warner would not comment on the matter, and Parsons did not grant an interview for this profile. If Parsons were to leave the company now, it would present some ticklish challenges for those left behind. At 6 foot 4, with a scruffy beard and a paunch, Parsons is a teddy bear of a man who excels at bringing out the best in people and mediating among warring factions. His skills could prove vital during the first year after the merger when culture clashes seem inevitable. ''He's not going to be replaceable,'' says John Utendahl, a longtime friend of Parsons and chairman and CEO of investment firm Utendahl Capital Corp. If he stays, Parsons faces tough challenges at the divisions he oversees. In December, America Online and Time Warner officials lowered their revenue-growth estimates for 2000 because of softness in the movie and music businesses. The company was hurt when New Line Cinema's movie Little Nicky, starring Adam Sandler, flopped, and music sales were left stagnant by Warner Music's shortage of hot new artists. ''These are hit-driven businesses,'' says analyst Scott B. Davis of First Union Securities Inc. Parsons must put the right people in place to sniff out those hits. Even if he doesn't go into the Bush Administration, Parsons may decide that his diminished role at AOL Time Warner doesn't suit him, so he may move on. ''He's a natural target. Dick Parsons is one of the up-and-coming CEO players,'' says Dennis C. Carey, vice-chairman of executive search firm Spencer Stuart. It may just be that after six years of nursing bruised egos, improving the balance sheet, and tackling corporate crises, Parsons will decide it's time to try something new. By Tom Lowry in New York _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ BACK TO TOP					RELATED ITEMS Show Time for AOL Time Warner COVER IMAGE: Show Time! TABLE: Can These Two Make the Marriage Work? TABLE: Pittman's Highest Hurdles TABLE: What They're Saying about Pittman RESUME: Robert Warren Pittman The Man Who Made Levin Look Good TABLE: Pittman's Co-Pilot AOL Abroad: Miles to Go (int'l edition) TABLE: A Global Report Card INTERACT E-Mail to Business Week Online

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