Northern, WI 04/13/2013 (usastockreport) – Eastdil Secured LLC, the real estate brokerage has been hired by Time Warner Inc (NYSE:TWX) (Closed: $59.46, Down by 0.34%) to have its Manhattan headquarters evaluated. This is the first step towards leaving the landmark twin-tower for less-expensive office-space. The building covers an area of 1.1 million square feet and its market value will be determined by Eastdil said the spokesperson for the company, Keith Cocozza. The Time Warner building is a dominating glass-clad structure that stands tall near Central Park and overlooks Columbus Circle. The company has not yet finalized whether the building will be leased-out or sold. Either ways, the deal will be finalized soon.
On a cost-cutting spree
Jeffrey Bewkes, the Chief Executive Officer of Time Warner is making every effort to cut-costs and has been training his energies on building the profitable TV operations. Time Warner owns CNN, HBO and Warner Brothers and last month it announced that it will be breaking-free of the languorous Time Inc magazine. This, post an unsuccessful attempt at sealing a merger deal with Meredith Corp, the publisher. Since its opening in 2004, the Time Warner center has been one of mid-town Manhattan’s prominent structures. This impressive building is an entirely commercial one. In addition to office space it also houses high-end stores and restaurants and a Whole Foods market as well.
In a 2011 interview, Bewkes had called the Time Warner Building an indulgence and the company had been considering this move since that time. Douglas Harmon, the managing director of Eastdil will be handling the effort and had very recently been the Sony representative in the sale of its Manhattan headquarters, which had sold for $1.1 billion. Time Warner’s television business has been booming and its shares have risen by 65 percent over the past year. In its fourth-quarter, the company had posted an operating income gain of 21 percent, which was largely attributed to revenue-growth in its cable channels like HBO. Time Warner is not laving anything to chance and is ensuring that all excesses are being trimmed.