Top Story

e4m_logo.png

Home >> International >> Article

International: AOL TW, Comcast and AT&T Set to Agree $9bn Cable Deal

23-August-2002
Font Size   16
Share
International: AOL TW, Comcast and AT&T Set to Agree $9bn Cable Deal

AOL Time Warner is said to be putting the finishing touches to a deal worth up to $9 billion with AT&T and Comcast to unravel the Time Warner Entertainment cable and content partnership.

As expected, AOL TW will take full control of TWE’s Warner Bros film studio and Home Box Office television channel. It will also gain all of Time Warner Cable, most of which is currently within the partnership.

AT&T will relinquish its stake of around 27% in TWE, receiving a 21% stake in Time Warner Cable plus $2.1bn in cash and $1.5bn in AOL TW shares. Comcast will end up with the proceeds of the deal, as it is in the process of buying AT&T’s cable-TV assets.

AOL TW will organise an IPO for Time Warner Cable, possibly as early as next year. Meanwhile, both the stakes destined for Comcast will be held in trust to avoid regulatory obstacles and will eventually be disposed of, though the timing will likely depend on market conditions.

Under the deal, Comcast is also expected to allow a high-speed version of AOL TW’s America Online Internet service – currently available only on Time Warner Cable – to be sold on its cable systems.

The total cost of the deal to AOL TW is between $8.5bn and $9bn, depending on valuations of various stocks.

Tags

The popular channel from the Viacom18 ‘s umbrella MTV Indies, which aired music by independent artistes, was replaced by MTV Beats, a 24x7 Hindi music channel in 2016

Bhasin on the checks and balances of new IRS, methodology with new companies like Vedsur on board, interpreting the data and why it’s not fair to compare with previous data

Chitresh Sinha, CEO, Chlorophyll Innovation Lab and Vivek Singh, Joint MD, Procam International speak exclusively with exchange4media on the upcoming #BeBetter Campaign for the TATA Mumbai Marathon

Abhishek Punia, Co-founder and COO of ARM Worldwide, tells about how they re-branded themselves from ARM Digital to ARM Worldwide and in the process marked their presence globally

Over the last 12 years, Cadbury 5Star has entertained viewers bringing to them ‘lost’ antics of the iconic duo of Ramesh and Suresh

As the brand sets its gaze towards the future, it was a clear direction to amplify the very feeling of this ‘attachment'

We list a few important stories that you may have missed in the week gone by