AT&T, AOL unravel TWE venture


According to Reuters, AOL Time Warner Inc. and AT&T Corp. said on
Wednesday they would dissolve a 10-year-old partnership in an estimated $9
billion deal that will help AT&T trim its debt pile and help AOL simplify
its corporate structure.

AT&T plans to sell its 27.6-percent stake in the partnership, Time Warner
Entertainment, which includes the HBO cable channel, Warner Brothers film studio
and Time Warner Cable, for $2.1 billion in cash, $1.5 billion in AOL stock and a
21 percent stake in a new publicly traded company holding the cable systems.

AOL, for its part, will get complete control of HBO, Warner Brothers, Court
TV and Comedy Central, and the remaining 79 percent of the new company, to be
dubbed Time Warner Cable.