Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : America On-Line (AOL) -- Ignore unavailable to you. Want to Upgrade?

To: ANANT who wrote (40491)	12/10/2000 2:59:55 PM
From: FR1	Respond to of 41369

The FCC is in a bind. They claim to be interested in free commerce but find themselves creating all kinds of regulations for the industry. They also claim that they are just making sure the laws are obeyed but, like the Florida Supreme Court, they seem to be making laws instead. With the republicans probably coming to power, the FCC members don't want to go too far. You have to consider that multiple internet ISPs on cable is still a experiment in the lab. ATT has the first real experiment going on now in Boulder. If it does work, it will only be for a few ISPs. You can't decree or legislate the laws of physics. The library - if they start messing with that you have a enormous can of worms. The FCC will suddenly be in charge of decreeing how all the media libraries in the world can or can't be rented. Major trouble and interference with commerce. I think Steve has this one figured out. The only way to stop it is for FCC to kill the deal altogether. In which case AOL/TWX will appeal the case to the new republican administration and probably get a better deal than we have now. reuters.com FTC May Vote Next Week on AOL Buy of Time Warner Last updated: 08 Dec 2000 17:12 GMT (Reuters) By David Lawsky WASHINGTON (Reuters) - The Federal Trade Commission may vote next week -- most likely Thursday -- on whether to approve America Online Inc.'s proposed purchase of Time Warner Inc., people familiar with the situation said on Friday. At this point, a majority of the five-member commission is not yet committed to approval of a consent decree, the same people say. The FTC staff is expected to offer a proposal to the board, without a recommendation. Typically, any consent decree would require a public review period that would delay final action until next year. The deal must also be reviewed by the Federal Communications Commission, and FCC commissioners expressed optimism Friday that they can move quickly to finish work after FTC action. "We're hoping to finish before year-end," FCC Commissioner Susan Ness told reporters. "We're moving toward a resolution." If an FTC consent decree requires major restructuring of the deal, then the FCC would be forced to put its decision up for public comment, she said. But FCC Commissioner Michael Powell told reporters that there would have to be truly major changes to require a comment period by the FCC. The Federal Trade Commission has been negotiating for months with AOL in an effort to make certain that open access is guaranteed on Time Warner's cable system lines. AOL has negotiated a deal with EarthLink Inc. in an effort to prove its willingness to open the cable systems. But as of Friday, some of the FTC commissioners, including Mozelle Thompson, remain unconvinced that AOL has gone far enough. The commission has also looked at the extent to which the combined company would make available Time Warner's huge library of magazine, music, television and movie content to rival Internet service providers. And they have puzzled over the direction that AOL-Time Warner's embryonic interactive television technology might take and whether that would be open to competition. Underlying their difficulties has been the unusual foray of the FTC into the world of regulation. The agency usually characterizes itself as a law enforcement agency that shies from regulation. Usually, the commission has required divestitures on the theory that structural changes are self executing and do not require continuing oversight.

To: ANANT who wrote (40491)	12/10/2000 5:00:14 PM
From: ANANT	Read Replies (1) \| Respond to of 41369

AOL-Time Warner Deal Decision Nears By KALPANA SRINIVASAN Sunday December 10, 3:30 pm Eastern Time Associated Press Writer WASHINGTON (AP) -- The merger between media giant Time Warner and Internet leader America Online hangs in the balance as government officials edge toward a decision. The companies last month extended negotiations with the Federal Trade Commission to mid-December, giving antitrust regulators time to review additional developments in the deal, valued at $162 billion when it was announced in January. A decision could come as early as this week. The FTC has scheduled a closed hearing on an undisclosed enforcement action Thursday -- the type of forum where the agency's five commissioners could discuss or vote on the merger. The decision also could be postponed, as has occurred several times during the FTC review. European regulators signed off on the deal -- the largest in U.S. corporate history -- in October. In addition to the FTC, the two companies also need clearance from the Federal Communications Commission. The FCC has said it will wait until the antitrust process at the FTC is complete before acting. Over the past months, the FTC has raised red flags about the possible anticompetitive effects of such a combination. The deal brings together a media conglomerate that owns a vast network of cable systems and shows, and the nation's top Internet service provider, with 25 million subscribers. To assuage wary regulators, the companies promised they would address one key concern by giving AOL's rivals access to Time Warner's high-speed cable lines to deliver Internet service. Under pressure, they backed this pledge up with a signed deal: Last month, Time Warner sealed an agreement with AOL's chief competitor, EarthLink (NasdaqNM:ELNK - news), to offer that Internet service over its cable systems. That means consumers who subscribe to Time Warner's high-speed Internet cable service will have choices besides AOL for their online provider. The FTC staff has been reviewing the terms of the EarthLink deal to see if it passes muster as part of the broader merger review. Some Internet providers still argue that the terms reached by EarthLink may not set a suitable blueprint for negotiations in the rest of the industry. Some critics and rivals also have raised concerns about the ability of the combined business to horde Time Warner's content, sealing it off from other distributors. Time Warner's treasure trove of content includes HBO, CNN and movies and music from Warner Brothers. The proposed merger has triggered concerns that Time Warner may not give Internet providers other than AOL equal access to its content. ``The fundamental issue is how to prevent them from leveraging their power over transmission and enormously popular content,'' said Gene Kimmelman of Consumers Union. Conversely, AOL could give preferential treatment to Time Warner's content on its interactive television and internet services, giving less opportunity to material from other media outlets, some fear. Top company officials have said that consumer demand for variety will drive them to give access to a broad range of media. On the Net: America Online site: corp.aol.com Time Warner site: timewarner.com