Out-Law News

AOL & Time Warner deal with rival in hope of merger approval


America Online and Time Warner have announced a deal that allows an ISP in the US, EarthLink, to offer its service on Time Warner’s broadband cable network. The move is a concession by AOL and Time Warner in their continuing attempt to win regulatory approval for their proposed merger.

Postponing the merger’s intended completion by a number of weeks, a joint statement said: “The Companies expect to close their merger by the end of the year or the very early days of 2001.”

Previously the companies had insisted that the deal would be done not later than 21st December.

The US Federal Trade Commission is reviewing the merger and the review period has been extended for two weeks beyond November 30th. One concern of the FTC was that excluding AOL’s rivals from Time Warner’s cable network would be anti-competitive. The deal with EarthLink, which has 4.6 million subscribers, should ease that concern.

We are processing your request. \n Thank you for your patience. An error occurred. This could be due to inactivity on the page - please try again.