RUMOR MILL
Wednesday, January 10, 2001
FCC PUTS OFF UNTIL
TOMORROW WHAT THEY COULD HAVE DONE TODAY
AOL-TW Merger Approval Expected Any Minute Or Day Or Week Now
The Federal Communications Commission is ready to gives its approval to America Online's merger with Time Warner. Two of the five commissioners have reportedly already voted in favor of the merger, now valued at close to $100 billion based on AOL's closing price today of $44.89, up $2.04. Time-Warner was also up $2.60 to $67 a share. When the deal was first announced a year ago to the day, it was valued at about $164 billion, but it has dipped almost a third with the price of AOL stock. The decision, which was expected today, is now being put off until tomorrow, just like Scarlett O'Hara used to say.
In fact, FCC Chairman William Kennard canceled his planned address today at the Future of Music Summit (see related hitsdailydouble.com story), to help finish the commission's review of AOL's proposed acquisition of Time Warner.
The five-member commission, which is the final obstacle to the AOL-TW pairing, has delayed approval because of reported disagreements on instant messaging, but it now appears the approval vote will not include stringent restrictions on the company's IM capabilities. However, the agency is expected require the company to open its IM to rivals after it introduces advanced services such as video messaging. A final OK has been delayed by infighting among the commission's three Democrats over this issue.
