Time Warner (NYSE: TWX) announced that CEO Dick Parsons will step down at the end of the year. Current president and chief operating officer (and former head of HBO) Jeff Bewkes will replace him.

Bill Martin, editor of FindProfit observes, "The move comes as little surprise as Parsons' contract was running out in May 2008, and Bewkes had been groomed to be his successor." Parsons, he notes, will remain chairman.

The advisor explains, "The bottom line is that by all accounts, Bewkes is a solid executive, and one who may be apt to break up the media conglomerate. TWX has taken some limited actions under Parsons to unlock value by listing Time Warner Cable (NYSE:TWC) shares and selling several magazines.

"Bewkes, however, is likely to take the restructuring a step further, including possibly spinning off AOL and TWC completely and selling the entire publishing division. As witnessed by today's reaction to the announced split-up of IAC/InteractiveCorp. (NASDAQ:IACI), such actions would most likely be cheered by investors.

He concludes, "While we had previously viewed TWX shares as a source of funds, we now don't believe it is time to sell. The stock, trading near a 52-week low, looks cheap, and a new CEO with a penchant for restructuring and unlocking value could be just the catalyst that TWX needs."

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