NEW YORK (CNNfn) - The Federal Communications Commission is closer to giving the green light to America Online Inc.'s acquisition of Time Warner Inc., CNNfn has learned.|
A source close to the deal, now valued at $99 billion based on AOL's Tuesday closing price of $42.85 a share, says the FCC may be nearing a vote and approval of the deal.
Two of the five commissioners are in favor of the merger and believe they may have some word as early as Wednesday afternoon or Thursday, the source said.
The AOL-Time Warner deal, announced a year ago on Jan. 10, 2000, originally was valued at about $164 billion, but has fallen with the price of AOL stock.
Earlier, the Wall Street Journal, citing people familiar with the deliberations, reported that the FCC is close to an approval vote that will not include stringent restrictions on instant messaging.
However, the agency is expected to demand that AOL (AOL: Research, Estimates) begin opening instant-messaging services to rivals as it introduces new, advanced services such as video over instant-messaging channels, the paper said.
Approval of the deal had been delayed by infighting among the five-member commission's three Democrats over the issue, the paper said.
AOL shares rose 60 cents to $43.45 Wednesday morning, while shares of Time Warner (TWX: Research, Estimates), the parent of CNNfn, traded at $65.36, up 96 cents.