Tying The Knot Time Warner, Turner Deal Clears Final Hurdle

Time Warner Inc. and Turner Broadcasting Systems Inc. shareholders overwhelmingly approved Time Warner’s $7.34 billion acquisition of Turner’s cable television empire, forging the world’s largest media and entertainment company.

At separate shareholder meetings in New York Thursday, holders of each company approved the transaction. More than 98 percent of Time Warner shareholders approved the transaction while a large majority of Turner investors rubber stamped the combination.

The combination was expected to be sealed Thursday night and Turner stock will stop trading today, Time Warner officials said.

“This company is gone,” said Turner, 57, who will be Time Warner’s vice chairman and its largest shareholder with an 11 percent stake worth $2 billion. “But, I think this is the right thing to do. This is a dream.”

Turner’s cable television empire, which includes Cable New Network and the Cartoon Network, combined with Time Warner’s cable, music, film and magazine publishing holdings, tops a beefed-up Walt Disney Co. after its $19 billion acquisition of Capital Cities/ABC Inc.

Time Warner’s holdings include the Looney Toons cartoons, People magazine and Warner Brothers, Hollywood’s top studio. The combined company also has a mountain of debt - more than $17.5 billion.

Ted Turner, who founded his company 25 years ago from a single low-power Atlanta TV station, said he wants to cut the company’s debt in half - soon.

“The sooner the better,” said Turner. “We’re going to cut millions of millions of dollars and, like Superman, we’re going up, up and away, in terms of ratings, magazine subscriptions, movie box office share.”

Turner shrugged off a recent challenge to stall his company’s sale. On Wednesday, News Corp.’s Fox News Network LLC filed a $1.25 billion antitrust lawsuit to halt the transaction.

“The Fox suit is a frivolous piece of junk,” said Turner.

Shares of Time Warner rose 25 cents to $41.375 on volume of 8.44 million shares. Turner Class A stock rose 25 cents to close at $31. Earlier, the shares touched a record $31.125. “We’re going out on a high,” said Turner.

Turner holders will get 0.75 share of Time Warner for each share they hold. Time Warner is issuing 178 million shares to buy Turner.

Time Warner Chairman Gerald Levin said he is committed to driving up the company’s stock price, which is languishing at 1993 levels. “The stars are aligned for interesting things to happen,” Levin said. “We’re committed to growing the capitalization of this company.”