AOL and Time Warner Merger Approved

Posted on January 11, 2001

America Online, Inc. and Time Warner Inc. announced that they have completed their merger to create AOL Time Warner Inc. The merger was completed after approval by the Federal Communications Commission (FCC) with conditions placed on AOL's instant messenger service and Time Warner's cable television lines.

The new company will be called AOL Time Warner and the stock will be traded under the symbol AOL on the New York Stock Exchange. The merged company is billing itself as, "the world's first Internet-powered media and communications company, whose industry-leading businesses include interactive services, cable systems, publishing, music, cable networks and filmed entertainment."

The news followed an earlier report from Reuters that CNN, a news unit of Time Warner, Inc., would be laying off 500 to 1,000 people, with most of the job cuts coming in its Internet operations.

About the merger Steve Case, Chairman of AOL Time Warner, said, ``This is a historic moment for consumers everywhere, and a tremendous step toward our goal of becoming the world's most respected and valued company. AOL Time Warner will lead the convergence of the media, entertainment, communications and Internet industries, and provide wide-ranging, innovative benefits for consumers. Our brands, services and technologies already touch hundreds of millions of people and, by closely integrating our assets, we will embed the AOL Time Warner experience more deeply into their everyday lives. At the same time, our company is deeply committed to the communities in which we live and work, and through our philanthropic initiatives, we will explore ways to use the power of media, communications and information technologies to serve the public interest and strengthen society.''