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NBC sells Court TV stake
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May 26, 1998: 1:01 p.m. ET
Time Warner, Liberty Media each boosts ownership to 50 percent
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NEW YORK (CNNfn) - Time Warner Inc. and Tele-Communications Inc., the nation's top two cable companies, agreed Tuesday to acquire NBC's 33-percent ownership in their joint venture, Court TV.
The transaction -- valued at between $150 million and $200 million -- puts to rest a brewing battle between the three partners, which each had different long-term goals for the cable channel.
"With this agreement, we are able to bring an end to an uncertain period in the history of Court TV," said Richard D. Parsons, president of Time Warner Inc.
TCI had proposed merging the venture into Discovery Communications Inc., which operates the Discovery channel. TCI, of Englewood, Colo., owns about 50 percent of Discovery.
However, that deal was vetoed by Time Warner Vice Chairman Ted Turner.
In addition, an investment group that included Evercore Partners Inc. of New York also tried to acquire a partial stake.
Under the agreement, Liberty Media Corp., TCI's programming business, and Time Warner will acquire NBC's stake in two stages.
Exact terms of the agreement weren't disclosed.
As a result of the transaction, each cable firm will own 50 percent of the cable network, which boasts about 33 million subscribers.
In addition, the agreement grants NBC the right to purchase equity in the venture in the future.
The transaction is subject to approval of the boards of the partners.
Launched in July 1991, Court TV will continue to provide trial coverage and other legal and court-related programming. Time Warner will continue to manage the day-to-day operations of the venture.
NBC is a unit of General Electric Co. Time Warner is the parent company of the CNNfn network and this Web site.
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