In a 3-2 vote yesterday, the FTC approved Time Warner's
planned $6.5B acquisition of Turner Broadcasting System,
according to INSIDE MEDIA ONLINE. Time Warner said both
companies will hold separate shareholder meetings on October 10
in New York to finalize the deal (INSIDE MEDIA ONLINE, 9/13).
Among provisions worked out by the FTC to allow the merger was
"one noteworthy concession from Time Warner," in that the company
has pledged to carry a 24-hour news channel that would compete
with CNN on half of its cable systems. The FTC also looked to
"dilute" the influence of TCI CEO John Malone, as through Liberty
Media, TCI owns a 22% state in TBS which would convert into a
7.5% stake in Time Warner. Now, TCI and Liberty Media "have
agreed to spin off that interest into a separate company" (Mark
Landler, N.Y. TIMES, 9/13). The deal creates the world's biggest
media conglomerate, with about $20B in annual revenues -- "not
only from cable TV operations, but from books, magazines, movies,
music and telephone services" (L.A. TIMES, 9/13).
FIGHT THE POWER: Consumer groups were critical of the FTC's
announcement, fearing the deal would bring higher prices for
cable TV and fewer programming choices (Jube Shiver, L.A. TIMES,
9/13). Gene Kimmelman, co-Dir of DC-based Consumers Union: "You
still have the two largest cable systems, Time Warner and TCI, in
parallel arrangements, with a passive ownership in Time Warner,
but still with an interest in driving up cable prices and
blocking competitors from getting in the business. Cable rates
have gone up 10% this year and we are fearful that because the
[FTC] didn't go far enough that they will just escalate further"
("Business Insiders," CNBC, 9/13).
HOME FOR THE BRAVES? TBS Chair Ted Turner said the Braves
and Hawks "will be part of the new company. They will be owned
nominally, which is how I own them now. There won't be any
change from the way things are now. They will go on just like
they are now. Down the road, if it ever comes to a point the
company decides to sell them, I'll try to buy them and operate
them privately. They have come to mean that much to me over the
years" (Furman Bisher, ATLANTA CONSTITUTION, 9/13).
