Steve Case Steps Down as AOL Time Warner Chairman

Posted on January 17, 2003

AOL Time Warner Inc. announced that Steve Case has decided to step down as Chairman effective at the Annual Shareholders Meeting on May 16th. Case will be replaced as Chairman by CEO Dick Parsons, who will now hold both the CEO and Chairman titles. Case will remain a board member. Steve Case has been under pressure from both shareholders who blame him both for the merger and AOL Time Warner's recent stock plunge. Steve Case was one of the original founders of AOL and helped orchestrate AOL's merger with Time Warner in 2000.

In his announcement to the Board, Steve Case admitted that he did not want to step down, but said it was the best thing for him to do for the company. Case also hinted at the rising pressure against him, "Given that some shareholders continue to focus their disappointment with the company's post-merger performance on me personally, I have concluded that we should take steps now to avoid the possibility of that effort hindering our ability to pull together as a team and focus fully on our businesses."

Steve Case went on to tell AOL's Board of Directors that he still believes the merger will be a good thing for shareholders in the long term: Case said, "I believed in America Online when we built it; I believed in AOL Time Warner when we created it; and I continue to believe in the great potential of this company and its people." Case also echoed continued support for the merger in a recent interview with CNN's Paul Zahn.

About his newly added position, Mr. Parsons said, "I am highly gratified that the Board shares my determination to maximize AOL Time Warner's tremendous potential. As we address the challenges facing our Company and the industries in which we operate, I will work together with the extraordinary people in this Company to focus on increasing value for our customers and our shareholders."