Munro to Resign From Top Time Warner Posts

J. Richard Munro, the former Marine Corps sergeant who led Time Inc. through the 1980s and its merger with Warner Communications Inc., will relinquish the co-chief executive’s post in favor of Steven J. Ross and Nicholas J. Nicholas Jr.

Munro, who also gives up the co-chairman’s job, announced his decision at the first annual meeting of Time Warner Inc., the entertainment and media giant that was formed by last year’s $14-billion acquisition of Warner by Time.

Ross, 62, now becomes the sole chairman and co-chief executive with Nicholas. Under an arrangement worked out during the merger talks, Ross is to relinquish both of his titles in July, 1994.

Munro will continue as chairman of the executive committee of the Time Warner board.

While Ross and Nicholas are technically equals, some outsiders have predicted that Ross is likely to wind up the more powerful of the pair. Reporting to him are the company’s motion picture and music divisions and portions of its book and cable television operations. Reporting to Nicholas, 50, are Time Warner’s magazine and pay-TV units and portions of the book and cable divisions.

At the annual meeting, Ross defended Time Warner’s plan to help finance Pathe Communications’ proposed acquisition of MGM/UA Communications but acknowledged that he didn’t know whether the deal would be completed.

Ross said Time Warner was wise to put $650 million toward the $1.2-billion deal, since “there isn’t a motion picture company that wouldn’t love (a) deal” that gave it worldwide distribution rights to MGM/UA’s huge film library.

Ross added that he didn’t know whether the acquisition would be completed, however, because it is unclear whether Pathe will be able to raise the remaining money. He said the company would not increase its commitment beyond $650 million.

Separately, Ross blamed the weakness in Time Warner stock on legislation in Congress that would allow municipalities to reregulate cable TV rates. Such proposals have sliced $2.5 billion to $3 billion from the value of Time Warner’s stock, Ross said.

Ross appeared to count as a victory an agreement that Time Warner reached with producers Peter Guber and Jon Peters allowing the pair to break their contracts with Warner Bros. and take top positions at Columbia Pictures Entertainment.

In light of the settlement, which Ross said was worth $800 million to Time Warner, “we wish Guber/Peters all the luck in the world. And if people want to take our people under contract and give us $800 million, they can come talk to us.”

Time Warner executives stressed their determination to lower the company’s $10.8-billion debt load, which grew sharply as Time tried to fight off a takeover attempt by Paramount Communications last year. While Time Warner continues to make investments, this “doesn’t mean we’re not cognizant of our present level of debt,” said Munro. “It will be reduced.”