Negotiators for Turner Broadcasting and Time Warner "are
said to be very close to finalizing an agreement" on the proposed
$8B merger, according to this morning's ATLANTA CONSTITUTION,
although board meetings of the two companies are not expected
before midweek. If the deal goes through, Time Warner would
issue more than 180 million new shares to TBS shareholders.
Through Liberty Media, TCI Chair John Malone's stake in Time
Warner would be 8%, second only to Ted Turner's 10%. Also, Time
Warner is said to have agreed to amend its by-laws to allow
Malone to acquire an "even more valuable stake" in the future --
from a ceiling of 15% to 20% (Haddad & Unger, ATLANTA
CONSTITUTION, 9/18).
SYNERGY PREVIEW: In a preview of possibilities under the
new company, Mark Landler reports that Time Inc. Editor-in-Chief
Norman Pearlstine recently met with CNN execs, with TV shows
based on Time Warner magazines, on-line services using CNN news
feeds, and a sports cable network drawing on the resources of
Sports Illustrated all discussed. In addition, the new CNN
Financial Channel could merge with Time Warner's Money and
Fortune (N.Y. TIMES, 9/18).
