Time Warner Deal Clears Major Hurdle

Time Warner Inc.’s plan to buy the rest of Turner Broadcasting System Inc. for $7.5 billion cleared a major hurdle as a Delaware judge dismissed a US West Inc. lawsuit that sought to block the purchase.

Chancellor William Allen ruled against US West’s claim that Time Warner’s acquisition would violate an agreement to not enter into ventures that compete with their Time Warner Entertainment partnership, which includes Warner Brothers, Home Box Office and 7 million cable subscribers.

The acquisition still has to be approved by the Federal Trade Commission. The regulator, which has been negotiating with Time Warner for several weeks over possible antitrust violations, is expected to request significant changes because the combined company will have access to 40 percent of the nation’s cable television customers and rake in $1 of every $4 at the box office.