FTC delays vote on AOL-Time Warner
By William L. Watts, CBS.MarketWatch.com
Last Update: 12:21 PM ET Nov 28, 2000
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WASHINGTON (CBS.MW) -- The Federal Trade Commission has put off a vote on a lawsuit to block America Online's acquisition of Time Warner as the agency and the companies appeared to make progress toward a settlement, published reports said.
The five-member commission voted late Monday to delay a vote on the lawsuit, which had been scheduled for Thursday, The Wall Street Journal reported Tuesday. Commissioners were reportedly encouraged by a deal struck by AOL (AOL: news, msgs) , Time Warner (TWX: news, msgs) and Internet service provider Earthlink (ELNK: news, msgs) that would give Earthlink access to Time Warner's cable lines.
A Time Warner spokesman refused comment on the report. An AOL spokesperson didn't immediately return a phone call seeking comment.
Some commissioners reportedly want to see more details of the access agreement inked with Earthlink. Commissioners could seek changes in the agreement before offering their approval, the report said.
The agreement with the ISP was forged at the behest of the agency, which had demanded that AOL and Time Warner forge a deal that would give an outside ISP access to Time Warner's cable lines before it could offer AOL services on those same lines.
In the talks, officials have focused on ways to prevent AOL from getting a head start in high-speed Internet services. They have also demanded assurances that prices for competitors would be offered on "nondiscriminatory terms."
AOL shares were $1.85 lower in recent trade at $42.12, while Time Warner was down $2.62 at $63.25. |
