Case to be CEO.
thestreet.com
LONDON -- Merger mania could have legs in the year 2000.
According to the wire-service reporters, AOL (AOL:NYSE - news) and Time Warner (TWX:NYSE - news) are expected to announce a merger early this morning.
Time Warner couldn't be reached for comment. AOL's office in London referred calls to the U.S. AOL couldn't be reached in the U.S.
The deal, expected to be an all-stock deal, would create a media giant with strengths in both old and new media. Time Warner, with its ownership of CNN, a big magazine stable and cable businesses, would combine with the massive online presence of AOL. The deal is expected to be a stock-for-stock deal.
According to reports, AOL chairman and CEO Steve Case will become the chairman of the new entity, while Time Warner chairman and CEO Gerald Levin will be CEO.
On Friday, AOL gained 5 to 73 3/4, giving it a market cap of $164.9 billion, and Time Warner lost 2 3/16 to 64 3/4, giving it a market cap of $83.3 billion.
Despite a high-profile mess with Pathfinder, Time Warner's CNN unit has quietly built competitive operations on the web. CNN.com and CNNSI.com have both moved into strong positions in the news and sports areas online.
The combination would immediately give AOL powerful broadband options, including access to Time Warner's large cable operations. Time Warner's magazine would get dreamy access to AOL's massive customer base
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ps: This obviously points out my brilliance. I use AOL at work and Roadrunner cable (Time Warner) at home! LOL |
