AOL TW, Comcast Complete $3.6bn Cable Deal

02 April 2003

AOL Time Warner and Comcast have completed the unravelling of the Time Warner Entertainment cable-and-content partnership.

Under the deal, AOL TW has paid $2.1 billion (€1.9bn; £1.3bn) in cash plus $1.5bn in stock. In return, it gains 100% control of TWE entertainment assets such as Warner Bros, Home Box Office, Comedy Central and Court TV.

AOL TW also takes a 79% stake in a new unit called Time Warner Cable, the remaining 21% going to Comcast.

The TWE partnership was initially set up by Time Warner and AT&T, before the former merged with America Online and the latter’s cable-TV operations were purchased by Comcast.

The next stage will be to hold an initial public offering of Time Warner Cable, possibly as early as this summer.

Data sourced from: Washington Post Online; additional content by WARC staff