CNNMoney.com
Companies Economy International Corrections Pre-market Trading After-hours Trading Winners/Losers/Actives Bonds Currencies Commodities World Markets Money Magazine Real Estate Taxes Jobs Ask the Expert Money 101 Autos Mutual Funds The Help Desk Loan Center Best Places to Live Ask the Expert Ultimate Guide to Retirement Retirement Calculators Rules of Retirement Best Funds Best Places to Retire Fortune Brainstorm Tech Apple 2.0 Blog Big Tech Blog Sectors and Stocks Tech Talk Resource Guide Small Business Makeovers Questions & Answers Small Business Video 100 Best Places to Launch FSB 100 Fortune Small Business Fortune 500 Brainstorm Tech Investing Management C-Suite Rankings Main Create Portfolio Edit Portfolio Create Alerts Edit Alerts
CLINCHING THE DEAL: HULK TO TIME WARNER!
By ALAN FARNHAM

(FORTUNE Magazine) – The reason Time Warner is buying Turner Broadcasting for $7.5 billion is of course that the company covets Turner's choice media properties: CNN, TBS, the Atlanta Braves, and MGM's film library. But lurking deep down in the Turner empire is another, little-known asset that may really have Time Warner management jumping up and down. It's professional wrestling.

Turner, it happens, is the proud owner of World Championship Wrestling (WCW), a league whose pummelings penetrate 9.4 million households. Traditionally it has taken a ratings beating from archrival WWF (World Wrestling Federation), owned by sports impresario Vince McMahon. Now Turner is gaining on McMahon, and help from Time Warner--which already airs events on its cable franchises and might now put them on HBO or pay-per-view--could put Ted on top. At stake: $150 million in sales of advertising, tickets, and merchandise.

Turner and McMahon went toe-to-toe last month when Turner launched Monday Nitro Live, a cavalcade of grappling to compete directly against McMahon's Monday Night Raw, among the highest-rated original series on basic cable. Raw featured a man in a white smock--a wrestling dentist ("Dr. Isaac Yankem"); Nitro, a devil in red tights and tail who speared opponents with a fork. Referees, knocked unconscious, missed crucial pins. There were tights pulling, gross interference, illegal use of folding chairs, and the splintering of a ringside table--in short, the full panoply of wrestling arts. When the smoke cleared, Turner's Nitro, with a 2.5 rating, had beaten Raw (2.2)...uh, raw, though their second matchup was a draw.

Several of the biggest names in wrestling, including Hulk Hogan and "Macho Man" Randy Savage, have jumped from McMahon to Turner. At least one advertiser has too: Goodmark Foods, makers of SlimJims. Says executive Andrew Modlin: "WCW is more aggressive and seems a little hungrier."

McMahon's WWF is still bigger, grossing an estimated $84 million. Turner's executive producer Eric Bischoff, says, "My goal is to break $50 million." With a push from Bugs Bunny & Co., why not?

--Alan Farnham