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America Online and Time Warner are merging to form a $350 billion

integrated media company.

AOL’s chief executive Steve Case will be chairman of the new company, to

be called AOL Time Warner, which will have combined revenues of over

$30bn. Time Warner chairman and chief executive Gerald Levin will be chief

executive. Case will focus on driving technological developments and

global policy, while Levin will oversee management and company

strategy.

The new company’s brands will include CompuServe, CNN, TNT, Time and

People, and the merger will open up new distribution channels for both AOL

and Time Warner’s US cable network and AOL’s online channels. AOL Time

Warner also plans to develop specific interactive products.

AOL Time Warner will be 55 per cent owned by AOL and 45 per cent by Time

Warner. The merger is subject to the approval of shareholders, but a

tranche of cross-promotional and content deals are set to break

immediately.

These include Warner Bros stores distributing AOL disks, AOL carrying Time

Warner’s InStyle magazine and AOL members having access to music clips

from Time Warner artists.

Andreas Schmidt, president and chief executive of AOL Europe, said the

merger was a ”win-win” for the joint venture company. ”The merger is a

natural union between two leading global media companies with strong

brands and joint venture partners. It is truly a win-win for AOL Europe

because it translates into even more significant content and a commitment

to grow our market leadership throughout Europe.”

Meanwhile, General Motors has also signed a deal with AOL to develop

online services enabling customers to interact with dealers at all stages

of car ownership.

AOL

CompuServe

Netscape Online

Digital City

AOL Instant

Time Warner

CNN

HBO

Warner Bros

Cartoon Network.