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US Regulators Approve Merger of AOL with Time Warner
The US Federal Communications Commission (FCC) approved Thursday, January 11, the merger of America Online (AOL) with Time Warner, clearing the last regulatory hurdle for the 106-billion-US-dollar deal.
Announced one year ago, the deal will combine the largest US Internet provider, which has 26 million subscribers, with a media giant that owns such popular entertainment titles as CNN, HBO, Sports Illustrated and Warner Brothers.
The FCC approved the deal under condition that the companies open AOL's widespread instant messaging service to rival providers over Time Warner's cable lines.
It will also be illegal for the companies to restrict consumers from using other Internet service providers than AOL, the FCC said.
The new company will be named AOL Time Warner, with AOL chairman and CEO Steve Case serving as chairman of the new entity with Time Warner Chairman Gerald Levin serving as chief executive officer.
The Federal Trade Commission approved the deal last December after the companies pledged to protect consumers' choices for Internet services and content.
Founded in 1985, AOL has 15,000 employees and provide services in seven languages in 14 countries. In the last fiscal year ending in June 2000, the company's revenues surged 43 percent to 6.9 billion dollars, while its net income jumped 59 percent to 1.2 billion dollars.
However in the first nine months last year, Time Warner, which has some 70,000 employees, posted a loss of 392 million dollars in net income, with its revenues only growing 6 percent to 20.5 billion dollars.
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