Time Warner Extends Comcast Deadline3/11/2005 8:42 AM Eastern
Time Warner Inc. extended the period under which Comcast Corp. could force the media giant to buy a portion of its 21% interest in Time Warner Cable by about two months, according to a securities filing Friday.
Back in September, Time Warner and Comcast agreed that Comcast would have the right, beginning Dec. 1, 2004, and ending April 1, to require the media giant to purchase 4% of its 21% interest for $750 million in cash and stock in a Time Warner Cable subsidiary with 90,000 subscribers.
According to Time Warner’s 10-K annual report, filed Friday, in February, Time Warner extended that deadline 60 days past April 1 following notification from either party.
The extension comes just as Time Warner and Comcast are waiting on news of whether their joint bid for Adelphia Communications Corp. -- estimated to be $17.6 billion -- will be selected as the winning bid for Adelphia’s 5.3 million cable subscribers.
Comcast was widely expected to contribute its 21% interest in Time Warner Cable and as much as $2 billion in cash to the bid.