Written by Rob MacFarlane | July 11, 2017 09:33:51Toward the end of the year, a few weeks before Time Warner filed for Chapter 11 bankruptcy protection, the company’s board of directors unanimously approved a $2.8 billion offer for the publisher, according to a filing with the Securities and Exchange Commission.
The proposed sale includes a minority stake in Time Warner’s parent company.
The transaction would create a company that would control a majority of Time Warner and be the world’s largest publisher of books, according the filing.
“Time Warner is one of the world leaders in interactive media, entertainment, and video games, and its long-standing strategy and approach to content delivery, particularly in the digital age, will be a significant benefit to Time Warner shareholders and the global industry,” the board said in the filing, which did not detail the proposed purchase price.
Time Warner CEO Jeff Bewkes told investors in November that the acquisition would create more than a billion dollars of value for shareholders and would be “the catalyst for the transformation” of Time’s business.
“It’s the beginning of the end for the company,” Bewke said at the time.
The company has been losing money for years, and the company reported a net loss of $13.2 billion in the third quarter of 2016.
A deal to sell off Warner Bros. was expected to be announced at a shareholders meeting in January.
However, that deal has been postponed until early February.