Time Warner opens its annual shareholders meeting today with
the dual announcements that the company will chip away at its
debt by selling off 15 small cable systems for $260M and that
they plan to launch their own commercial online service featuring
news and entertainment from Time Inc.'s magazines and Warner
Brothers' TV, film and music groups. While most online services
are delivered on commercial phone lines, Time Warner's yet-to-be-
named service will come over coaxial cable lines in the company's
cable network and through other cable operators. Time Inc. New
Media Senior VP Paul Sagan: "People are gravitating to online
services. We think that marrying it to the high-speed delivery
of cable is even better" (Mark Landler, N.Y. NEWSDAY, 5/18).
PERELMAN AT THE GATE: Time Warner's stock jumped $1.50 upon
reports that financier Ronald Perelman was considering a purchase
of Seagram Co.'s almost 15% stake in the company. However, one
exec familiar with Time Warner said that Perelman called Time
Warner CEO Gerald Levin to refute the rumors (WALL STREET
JOURNAL, 5/18). VARIETY cites insiders who say that Seagram "has
not even begun to work on selling the shares and no deal is
imminent" (DAILY VARIETY, 5/18).
