Financier Carl Icahn and Time Warner execs have made peace over the future of the media company, reaching a settlement that had Icahn renouncing his call to break up Time Warner, whose board in turn pledged to make efforts to increase shareholder value, reports Red Herring. Icahn also abandoned his plan to take over board seats after he and Time Warner CEO Dick Parsons met several times during the week. Time Warner will instead appoint two new independent members to its board and in doing so consult Icahn.

Time Warner has agreed to boost its share repurchase program to $20 billion from $12.5 billion, pledged to cut $1 billion in costs, and will review other initiatives proposed in a report that Icahn commissioned from investment bank Lazard.

In a statement, Parsons said of Icahn, "We appreciate his role as a significant shareholder as well as his constructive suggestions."

"By agreeing to implement the critical corporate reforms we have supported for several months, Dick Parsons is making great strides toward enhancing shareholder value," Icahn said in his statement.