TIME WARNER CONTINUES PUSH TO CUT DEBT
Published May 19, 1995
At yesterday's shareholders meeting in New York, Time Warner Chair Gerald Levin confirmed the company is selling 15 of its cable systems for $263.7M. The sale represents "the latest move by Levin to whittle down Time Warner's $15 billion in debt and marks the continuation of an agressive debt reduction plan started just over three months ago," according to Greg Clarkin in today's NEW YORK POST. Systems serving 144,000 customers in AK, KS, MS, MO, NJ, TN, and PA will be bought by TCA Cable TV, TCA Partnership, Classic Cable, York Cable TV, Lenfest Communications, Raystay, and Intermediate Partners. Time Warner shares dropped one point yesterday to close at 39 1/4 (NEW YORK POST/Mult., 5/19). NO COMMENT, SOME COMMENT: When asked if Revlon and New World Communications head Ron Perelman is trying to buy 14.9% of Time Warner stock currently held by Seagram's, Levin declined to comment (AD AGE ONLINE, 5/19). However, Levin did say that Time Warner and AT&T have had discussions about providing joint telephone service, and that the company "is interested in expanding its relationship with Japanese partners Itochu and Toshiba" (N.Y. POST, 5/19). MEANWHILE, ON THE UPPER WEST SIDE: Capital Cities/ABC Chair and CEO Thomas Murphy told shareholders yesterday that the company has not "ruled out the possibility of a major corporate acquisition," but will focus on growth through expansion of television production and overseas operations. Cap Cities/ABC President Robert Iger said ESPN has had "excellent" performance and that ESPN2 "should be in the black late in 1995, somewhat ahead of projections" (AD AGE ONLINE, 5/19).