Report: Time-Turner merger will be approved
July 17, 1996
WASHINGTON (CNN) -- Federal antitrust regulators will approve the proposed $7.5 billion merger of Time Warner and Turner Broadcasting which would create the world's largest media company, a source told CNN Wednesday. An agreement expected to receive a final go-ahead on Friday calls for the merged entity to distance itself from dealings with cable giant Tele-Communications Inc.
For months, the Federal Trade Commission has investigated the proposed merger, concerned that the size of the combined companies would harm competitors. Reportedly, those concerns have been satisfied.
As part of an agreement with senior FTC staff members, TCI head John Malone agreed to cap his interest in the new Time Warner Turner to 9.2 percent. In addition, Malone's share of the merged companies would be spun off into a separate company for the benefit of shareholders of Liberty Media, a TCI subsidiary.
Further details were to be announced Wednesday morning.
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