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Ted and Jerry go west
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August 30, 1996: 11:46 a.m. ET
Time Warner, TBS chiefs meet in Montana to discuss merger
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NEW YORK (CNNfn) - Time Warner Inc. Chairman Gerald Levin and his Turner Broadcasting System Inc. counterpart Ted Turner are meeting Friday in Montana to iron out the remaining prickly issues in their $6.5 billion merger.
Sources told CNNfn that the two executives, along with Time Warner President Richard Parsons, are meeting at Turner's spacious ranch.
Levin and Turner are expected to cover possible layoffs at Turner, whether the company's New Line Cinema should be sold, the new management structure and the role each executive will play after the merger.
The two sides are in the final stages of a merger that will form the world's largest media company, combining Time Warner's publishing and entertainment businesses with TBS' news and entertainment outlets, including Cable News Network and CNNfn.
Both Turner and Levin would like to resolve their differences and move ahead with plans to issue proxy statements to shareholders.
The deal, which awaits approval from shareholders and federal antitrust regulators, is expected to be complete by mid-October.
Preliminary plans call for Turner to remain in charge of the TBS networks and also manage Time Warner's Home Box Office pay-television operation. Turner has also suggested that Time Warner place its Pathfinder online service under the control of Turner's CNN Interactive unit.
Earlier reports said that Turner believed up to 1,000 jobs and $100 million in expenses might have to be eliminated from the combined company. At their meeting in Montana, Turner and Levin are expected to hammer out which divisions will bear the brunt of those layoffs.
Reports also said Turner is perturbed over recent comments by Time Warner executives that they would like to sell TBS' struggling New Line Cinema unit after the merger is completed. Turner has reportedly said he does not want to sell the film unit.
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