RUMOR MILL
Attorneys for the FTC must rule by Oct. 27 whether or not to approve the merger. Sources said both sides remain far apart in their positions and a deal is unlikely by that time period.
Monday, October 16, 2000
FTC MAY BLOCK AOLTW
That Pesky High-Speed Internet Access Thingy Keeps Getting In The Way
U.S. government officials are preparing to block America Online's merger with Time Warner if an agreement over Internet access is not hammered out within two weeks, the Washington Post reported Saturday.
Unnamed sources said negotiators for both sides have been unable to reach a deal over how the merged company would ensure that rival Internet service providers would have access to its high-speed cable network.
Attorneys for the FTC must rule by Oct. 27 whether or not to approve the merger. Sources said both sides remain far apart in their positions and a deal is unlikely by that time period.
While the companies could ask for the deadline to be pushed back, FTC attorneys are preparing litigation to block the merger, the sources told the Post.
Word of a possible blockage comes on the heels of the European Commission's approval of the deal (hitsdailydouble.com, 10/9).
