Several directors of AOL Time Warner are seeking to oust the company"s chairman. The directors may seek Case"s removal as early as a board meeting in New York on Thursday, The New York Times reported, citing people close to the board. But Case wants to remain chairman, AOL Time Warner executives close to him said, and he will probably have enough support to forestall an open challenge at the meeting, the Times reported.
AOL Time Warner executives have acknowledged over the last few months that Case has come under fire from several institutional shareholders angry about his role as chief architect of AOL"s acquisition of Time Warner, the Times said. AOL is currently undergoing massive organizational changes. Once promoted as an engine to turbo-charge Time Warner"s old-media business with digital distribution, the merger has instead dragged that company down as growth has stalled.
Under terms of the merger Case negotiated for AOL to acquire Time Warner, a vote of three-quarters of the board is required to unseat him as chairman, so he needs only three allies on the 14-member board to withstand a challenge, the newspaper reported.