Is Time Warner's Zigging And Zagging Leading Anywhere?

Six months ago, Gerald M. Levin seemed under siege, vulnerable to a takeover by his largest shareholder, Seagram Co. Now, the chairman of Time Warner Inc. has taken the offensive: Levin's overture to General Electric about buying NBC is the latest in a flurry of moves that have left Time Warner watchers surprised, impressed, and more than a little puzzled.

In addition to the NBC talks, Levin recently offered $1 billion to buy TeleCable Corp., the nation's 18th-largest cable operator--only to be outbid by cable titan John C. Malone. He selected the first outsider ever as editor-in-chief of Time Inc. And though the company denies it, executives close to Time Warner say he considered selling off two parts of the magazine division: Southern Progress Corp. and Sunset Publishing Corp. On top of that, Time Warner is still racing to open the first lane of the Information Highway in Orlando by late 1994.