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AOL, TW details requested
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March 9, 2000: 3:55 p.m. ET
Regulatory agency asks for more details on AOL, Time Warner merger
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NEW YORK (CNNfn) - The Federal Communications Commission has requested more detailed information from America Online and Time Warner Inc. on their planned $150.7 billion merger, deeming the initial documents submitted for approval as lacking, officials at the FCC said Thursday.
In a letter dated March 6, FCC General Counsel Christopher Wright wrote AOL and Time Warner that "an initial review of the application reveals that you need to provide additional information and supporting arguments," including details on assets, lines of business and percentage of ownership interests and rights of both companies.
Wright noted several examples of lacking documentation, including details on AOL's interest in General Motors Corp. (GM: Research, Estimates). In its filing, AOL said there was no risk that its interest in GM, in combination with Time Warner, could adversely affect consumers.
"That may well be correct," the letter said. "But in the absence of any information concerning the extent of AOL's interest in GM, neither we nor commenters can intelligently evaluate that claim."
The FCC's request is not expected to delay the review of the deal, which would combine the No. 1 Internet service provider, AOL, with media and cable titan Time Warner.
Click here for a copy of the FCC's letter
An AOL spokeswoman said the Dulles, Va.-based company would quickly send additional information, backing up the company's claim that the merger would be good for consumers by promoting local competition and speeding the deployment of high-speed Internet service.
"We look forward to providing the commission with additional information about our merger and the consumer benefits it will bring," the spokeswoman said. "We'll be doing that expeditiously."
Officials at Time Warner, which is the parent company of CNNfn, could not immediately be reached for comment.
For its part, AOL (AOL: Research, Estimates) and Time Warner (TWX: Research, Estimates) have already taken steps to ease concerns among regulators about their pending marriage. Last month, AOL and Time Warner promised to open Time Warner's high-speed cable Internet service to competing Internet service providers as soon as possible. The FCC is currently reviewing the AOL-Time Warner deal for antitrust concerns.
It is not unusual for the FCC to request additional information from companies proposing to merge, particularly firms the size and scope of AOL and Time Warner, according to FCC officials.
The FCC must find that the transfer of Time Warner's licenses to offer communications services is in the "public interest" to let the deal go forward. The agency, which rarely blocks deals outright, could place conditions on the merger if it anticipates the agreement might harm consumers or lead to a monopoly in the industry.
AOL shares rose 4-7/8 Thursday, or almost 9 percent, to 59-3/4. The rise in share value was attributed to a media story indicating Chairman Steve Case is discussing an alliance between AOL and AT&T Corp. (T: Research, Estimates). Time Warner shares gained 6, or almost 8 percent, to 85-5/16. 
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