AOL Time Warner is expected to delay the IPO of Time Warner Cable until autumn, necessitating the sales of other assets in order to reduce debt, the Wall Street Journalreported in its online edition, citing people familiar with the matter.
The IPO of Time Warner Cable, of which the company owns 79 per cent, had been scheduled for the second quarter, but will probably not be carried out until September at the earliest, the newspaper said.
The Journalsaid it could sell Warner/Chappell Music, the music publishing arm of the Warner Music Group, for over $1 billion. It cited people familiar with the matter as saying AOL Time Warner has received indications of interest from potential buyers, but it has not definitely decided to sell it.
One potential buyer is billionaire Mr David Geffen, a partner in Dreamworks SKG, though he would be acting on a personal basis in this case, the Journalcited one source as saying. Other potential buyers include private equity firms.
Other assets AOL would be willing to sell include its 50 per cent stake in the Comedy Central cable network, the Journal said.
It has not ruled out the sale of Warner Music as a complete business, but the Journalcited people close to the company as saying AOL would prefer to keep the recorded music business, which includes labels such as Warner Bros Records, Atlantic Records and Elektra.
It said Mr Clive Calder, who last year sold his Zomba Music Group to Bertelsmann AG, might be one possible buyer for Warner Music. It said Mr Calder was not available to comment.
AFP