Richard Parsons, chairman and CEO of AOL Time Warner, said that the group had now generated $3.8bn (£2.4bn) in cash this year towards its debt reduction, through a legal settlement with Microsoft and the sale of its interests in Comedy Central and GM Hughes. However, this still leaves the company with a debt level of around $26bn.
Of this sale he said: "We're very pleased to have reached an agreement with Cinram that meets our strategic and financial objectives."
The DVD manufacturing business, which is part of Warner Music Group, manufactures, prints, packages and distributes DVDs and CDs. It includes the sale of WEA Manufacturing, Warner Music Manufacturing Europe, Ivy Hill Corporation, Giant Merchandising and part of Warner-Elektra-Atlantic Corporation. The sales and marketing division of WEA will remain part of AOL Time Warner.
According to reports, the media giant is also planning to sell some of its other non-core assets, namely the Atlanta Hawks basketball team and Atlanta Thrashers ice-hockey team.
Cinram sells pre-recorded entertainment such as videos, music on tapes and CDs, CD-roms and DVDs, for movie studios, record companies, publishers and computer software companies.
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