NEW YORK (CNN/Money) - Financier Carl Icahn said in a letter to Time Warner shareholders that the media company's board needs new outside directors due to past mistakes. The following is Time Warner's official response:

Over the past three years, Time Warner's Board of Directors and management have demonstrated their commitment to creating shareholder value, pursuing a strategy that focuses on creating sustainable long-term value in all our businesses while optimizing our capital allocation and leverage. During that period we greatly improved the financial health of the company by selling low-return businesses, reducing debt, stabilizing AOL, and made significant progress in resolving the company's legal challenges. All of these steps gave us the ability to enter into our pending Adelphia acquisition and institute a dividend and stock repurchase program.

With the company stable and strong, we are focused on continuing our efforts to build sustainable long-term value. As Mr. Parsons recently articulated, the company's immediate priorities for driving increased returns to shareholders are:

• Intensify and accelerate the transition of AOL's business model -- which we see as a significant opportunity to create value -- and achieve industry-leading financial results at our other businesses;
• Refine our capital allocation to drive increased returns, which could include consideration of increases in the dividend, share buyback, or both;
• Complete and integrate the Adelphia and Comcast transactions and thereby realize their value creation potential.

The management team has proven its commitment to shareholders and its openness to constructive ideas from knowledgeable people. We will proceed on our course, committed to increasing the value of this company and delivering a highly competitive return for all of its shareholders. We look forward to sharing our next steps with our shareholders in the coming weeks.

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To read Icahn's letter, click here.

For more on Icahn vs. Time Warner, click here.