http://www.yahoo.com/headlines/current/business/stories/tbs.html (Einblicke ins Internet, 10/1995)
NEW YORK (Reuter) - Representatives of Time Warner Inc. and Turner Broadcasting System Inc. were hammering out details of a complex deal to combine the media companies in an $8 billion stock swap, a source close to the talks said Friday.
The two companies and representatives of Tele-Communications Inc., a major Turner shareholder, were working on the details of the deal, the source said, indicating that they were close to a broad agreement.
``Talks have been very constructive and it's a long process because it's a tripartite deal,'' the source said, adding that an agreement could be announced as early as next week.
The source said John Malone, the TCI chief executive who is also a powerful Turner director, and Time Warner Chairman Gerald Levin have had ``very constructive discussions,'' giving credence to reports that Malone has endorsed the deal and that the Turner board has approved broad terms of a combination.
TCI owns 21 percent of Turner Broadcasting, and Malone's support has been viewed as essential to any agreement between Turner and Time Warner.
A combination of Time Warner and Turner would create the world's biggest media company.
In a related development Friday, Japan's Toshiba and Itochu said they would each take stakes worth up to $800 million in Time Warner.
Itochu and Toshiba linked up with Time Warner Inc. in 1991, and helped to set up Time Warner Entertainment in June 1992.
Electronics company Toshiba, and Itochu, one of Japan's biggest trading houses, both said they would use the expanded tie-up to broaden their interests in multimedia and entertainment.
Itochu said the three companies would expand their cooperation in fields such as publishing and music and participate in ``many, various'' projects. It did not elaborate.
Time Warner's stock was off 50 cents at $41.625 in early trading Friday on the New York Stock Exchange, while Turner's Class B shares were off $1 at $29.75 on the American Stock Exchange.
Japan's Toshiba and Itochu said Friday they would take stakes worth up to $800 million in Time Warner Inc., which is bidding to expand its entertainment empire with an $8 billion takeover of Turner Broadcasting System Inc.
Electronics company Toshiba, and Itochu, one of Japan's biggest trading houses, both said they would use the tie-up to expand their interests in multimedia and entertainment. Toshiba makes a range of communications and television hardware.