<ARTICLE> 5 <LEGEND> This schedule contains summary financial information extracted from the financial statements of Time Warner Inc. for the twelve months ended December 31, 1997 and is qualified in its entirety by reference to such financial statements. </LEGEND> <MULTIPLIER> 1,000,000 <PERIOD-TYPE> 12-MOS <FISCAL-YEAR-END> DEC-31-1997 <PERIOD-START> JAN-01-1997 <PERIOD-END> DEC-31-1997 <CASH> 645 <SECURITIES> 0 <RECEIVABLES> 3,438 <ALLOWANCES> 991 <INVENTORY> 2,596 <CURRENT-ASSETS> 5,011 <PP&E> 3,240 <DEPRECIATION> 1,151 <TOTAL-ASSETS> 34,163 <CURRENT-LIABILITIES> 4,371 <BONDS> 11,833 <COMMON> 6 <PREFERRED-MANDATORY> 1,857 <PREFERRED> 4 <OTHER-SE> 9,346 <TOTAL-LIABILITY-AND-EQUITY> 34,163 <SALES> 13,294 <TOTAL-REVENUES> 13,294 <CGS> 7,542 <TOTAL-COSTS> 7,542 <OTHER-EXPENSES> 0 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 1,049 <INCOME-PRETAX> 832 <INCOME-TAX> 531 <INCOME-CONTINUING> 301 <DISCONTINUED> 0 <EXTRAORDINARY> (55) <CHANGES> 0 <NET-INCOME> 246 <EPS-PRIMARY> (0.03) <EPS-DILUTED> (0.13)