CNN-ABC Deal ‘Hit a Pause’
The complexity of merging two news operations has stalled any CNN-ABC deal, AOL Time Warner Inc. Chief Executive Richard Parsons said Tuesday.
Parsons, in a speech before the annual UBS Warburg Media Week conference, said a merger would make good business sense because it would allow ABC to benefit from CNN’s international reporting expertise, while CNN could expand its audience via ABC’s stations and generally broad reach. CNN is owned by AOL Time Warner; ABC is owned by Walt Disney Co.
But figuring out the logistics has been challenging.
“We’ve hit a pause ... because it’s very, very complex,” Parsons said.
ABC and CNN have been in discussions for months about a possible merger. Last week, CNN Chairman Walter Isaacson said he and ABC News President David Westin already had worked out how to run their operations if they are merged. Isaacson said the deal had been delayed as AOL Time Warner takes care of other issues.
Parsons indicated that the media conglomerate’s plate remains quite full as it sorts out problems at its America Online unit.
AOL Time Warner shares rose 67 cents, or 5%, to close at $13.75 on the New York Stock Exchange.
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