EXHIBIT 12
 
                                TIME WARNER INC.
                       RATIO OF EARNINGS TO FIXED CHARGES
 


                                      NINE MONTHS
                                  ENDED SEPTEMBER 30,                    YEAR ENDED DECEMBER 31,
                               -------------------------   ----------------------------------------------------
                                 PRO                         PRO
                                FORMA      HISTORICAL       FORMA                    HISTORICAL
                               -------   ---------------   -------   ------------------------------------------
                               1997(a)    1997     1996    1996(a)    1996     1995     1994     1993     1992
                               -------   ------   ------   -------   ------   ------   ------   ------   ------
                                                         (IN MILLIONS, EXCEPT RATIOS)
                                                                              
Earnings:
    Net income (loss) before
      income taxes and
      extraordinary items..... $  373    $  360   $ (172)  $ (117 )  $    4   $    2   $   89   $   81   $  320
    Interest expense..........    742       792      688    1,011       968      877      769      698      729
    Amortization of
      capitalized interest....     17        17        1       19         6        2        2     --         19
    Portion of rents
      representative of an
      interest factor.........     63        63       43       86        63       57       52       54       85
    Preferred stock dividend
      requirements of
      majority-owned
      subsidiaries............     54        54       54       72        72       11     --       --       --
    Adjustment for partially
      owned subsidiaries and
      50% owned companies.....    719       682      594      844       801      691      665      663       97
    Undistributed losses of
      less than 50% owned
      companies...............     16        16       24       46        52      117       82       47       56
                               -------   ------   ------   -------   ------   ------   ------   ------   ------
        Total earnings........ $1,984    $1,984   $1,232   $1,961    $1,966   $1,757   $1,659   $1,543   $1,306
                               -------   ------   ------   -------   ------   ------   ------   ------   ------
                               -------   ------   ------   -------   ------   ------   ------   ------   ------
Fixed charges:
    Interest expense.......... $  742    $  792   $  688   $1,011    $  968   $  877   $  769   $  698   $  729
    Capitalized interest......     17        17        1       23         7        4        2     --         15
    Portion of rents
      representative of an
      interest factor.........     63        63       43       86        63       57       52       54       85
    Preferred stock dividend
      requirements of
      majority-owned
      subsidiaries............     54        54       54       72        72       11     --       --       --
    Adjustment for partially
      owned subsidiaries and
      50% owned companies.....    504       457      446      668       607      697      668      664       81
                               -------   ------   ------   -------   ------   ------   ------   ------   ------
        Total fixed charges... $1,380    $1,383   $1,232   $1,860    $1,717   $1,646   $1,491   $1,416   $  910
                               -------   ------   ------   -------   ------   ------   ------   ------   ------
                               -------   ------   ------   -------   ------   ------   ------   ------   ------
Ratio of earnings to fixed
  charges.....................    1.4 x     1.4x     1.0x     1.1 x     1.1x     1.1x     1.1x     1.1x     1.4x
                               -------   ------   ------   -------   ------   ------   ------   ------   ------
                               -------   ------   ------   -------   ------   ------   ------   ------   ------

 
- ------------
 
 (a) The pro forma ratio of earnings to fixed charges for TWI for the nine
     months ended September 30, 1997 and the year ended December 31, 1996 gives
     effect to (i) the TWE-A/N Transfers and (ii) with respect to 1996 only, the
     TBS Transaction, the Preferred Stock Refinancing and certain other debt
     refinancings as if such transactions had occurred at the beginning of such
     periods. The pro forma information presented above should be read in
     conjunction with the pro forma consolidated condensed financial statements
     contained in TWI's Current Report on Form 8-K dated November 13, 1997 and
     incorporated herein by reference.