• by Wayne Friedman , November 6, 2007

Jeff Bewkes will become Time Warner's chief executive officer at the end of this year, with current CEO Dick Parsons stepping down but remaining the company's chairman.

The move was expected for several months. Even when Parsons took over the top spot in 2000, he signaled to the investment community that his reign wouldn't be a long affair.

Bewkes, who had been president/COO of Time Warner since December 2005, had long been anticipated as Parson's successor.

The rumor mill was heating up with speculation that Parsons would step aside for some time--especially on the verge of its third-quarter earnings report on Wednesday.

Some major investors, such as Carl Icahn, pushed Time Warner to sell off divisions such as Time Warner Cable and/or AOL assets to increase its stock price, which has languished for some time in the $15 to $20 range.

Parsons has been adamant that AOL is not for sale. The cable division, however, might be a more likely spinoff.

Parsons took over the troubled Time Warner in 2000--following the debacle of AOL's purchase of Time Warner in 1999. He sold off several businesses, including Warner Music Group and a book publishing business, as well as knocking down the company's debt.

The company faced shareholder lawsuits and federal investigations stemming from shady accounting practices at AOL--as well as a scores of executives who departed under the failure of a grand synergistic plan of merging the assets of an up-and-coming Internet company with the largest traditional media company in the U.S.

Bewkes had come through the ranks of Time Warner. From 2002 to 2005, he was chairman of Time Warner's entertainment and networks group. Before that he was CEO of HBO from 1995 to 2002.

Time Warner stock jumped about 3% on the news--but then settled back for a 0.4% gain by the end of the day, finishing around the $17.90 mark.