AOL acquires Time Warner in $165B stock deal

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Dulles, Va.--In a move that may have far-reaching consequences for the growth of the Internet for business-to-business and consumer companies, America Online acquired New York-based Time Warner on Monday in an all-stock deal valued at more than $165 billion. The new company, which will have revenue of more than $30 billion, will be named AOL Time Warner. When the deal is completed, pending regulatory approval, AOL shareholders will own 55% of the new company, Time Warner shareholders 45%. Steve Case, chairman-CEO of AOL, will become chairman of AOL Time Warner, and Gerald Levin, Time Warner's chairman-CEO, will become CEO. Combining Time Warner's traditional media, including CNN, Time and Fortune, with AOL's subscriber base of 20 million, the new company will have the ability to deliver broadband through Time Warner's cable network. The acquisition is considered to be the first of a long-anticipated run of highly capitalized new-media companies buying old-media companies.
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