Re: Merger of Time Warner(sym:TWX) and America Online(sym:AOL)
Thread,
Some important news this AM that I believe is AOL's biggest deal in partnering with a broadband company. With this deal, it would be hard to imagine AOL will keep pushing for open access via AT&T's cable plant. I'm assuming AOL gets TWX's cable plant too. Didn't we all see this coming. But I thought it would be a huge DSL deal, not a cable deal.
Just when I thought all MSO's were fully valued, along comes this deal that values TWX substantially higher. up 45 this AM. AOL is also up on Instinet too.
MikeM(From Florida)
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America Online, Time Warner to Merge in Stock Transaction; AOL to Own 55%
By George Stein
America Online, Time Warner Agree to Merge in Stock Swap
New York, Jan. 10 (Bloomberg) -- America Online Inc., the world's largest online service, and Time Warner Inc., the biggest media and entertainment company, agreed to merge in an all-stock transaction.
Shareholders of America Online, with a market value of $164.9 billion, will receive one share in the combined AOL Time Warner, for each of their shares and own 55 percent of the new company. Shareholders of Time Warner, which has a market value of $83.3 billion, will receive 1.5 shares of AOL Time Warner for each of their shares.
The merger is the biggest-ever combination of an Internet service with a traditional media company. AOL's 20 million customers would provide an audience for Time Warner's television programs, movies and publications, including the CNN, TBS and WB networks, Warner Bros. movie studio and Time Magazine...
quote.bloomberg.com |
