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News > International
AT&T eyes Time sale - WSJ
February 26, 2001: 6:55 a.m. ET

Report: Telecom firm seeks IPO for AOL Time Warner entertainment unit
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LONDON (CNN) - AT&T is seeking an initial public offering for its stake in AOL Time Warner's entertainment unit, according to a published report on Monday.

Dissatisfied with AOL's proposal to pay $9 to $10 billion for its 25.5 percent stake in Time Warner Entertainment, AT&T is expected to "lay the groundwork" for a public offering of its stake, the Wall Street Journal said.

Registering for the offering isn't likely to lead to an actual IPO, but could be a way for AT&T to pressure AOL to pay an appraised value for the stake, the Journal reported, quoting unnamed sources.

In addition to its $9 to $10 billion offer, AOL, the parent of CNN, is looking for several side agreements to be part of the deal with AT&T, spanning cable systems, Internet access and programming interests, the Journal reported in its online edition. AT&T has reportedly balked at the demands.

AT&T (T: Research, Estimates) and AOL (AOL: Research, Estimates) executives were not immediately available for comment.

Time Warner Entertainment, 74.5 percent owned by AOL, covers most of Time Warner Cable as well as Warner Bros. Film studio and Home Box Office.

AT&T, which must sell its stake for regulatory reasons, has the right to offer its Time Warner Entertainment stake to the public during a 60-day window every 18 months and the current window ends on Wednesday. AT&T believes it has a right to force AOL to pay an appraised value, the report said.

By registering for an IPO, AT&T and AOL would have to hire an investment banker to value AT&T's stake.

AT&T, which must sell its stake following its purchase of MediaOne Group, is at a disadvantage because no other buyers have emerged besides AOL, the report said. graphic





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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.