Practice News Story 7: Business

Google Bids on Time Warner

Posted: 3:51 p.m., PST, March 7, 2007

PALO ALTO California- Internet powerhouse Google Inc (charts) put a hostile bid into the laps of Time Warner Inc. (charts) earlier today of a estimated 50 billion dollars in cash, stocks, and debt relief. The CEO of Time Warner, Richard D Parsons gave no comment of real interest, but he did say they would, “take it seriously.” Time Warner have thirty days to evaluate their net worth, and accept Googles offer. Parsons said, “it was unexpected,” the business world was stunned by the news. Google CEO Eric Schmidt said they have been interested in Time Warner for a very long time, and it was a great opportunity for a merger such as this. Google offered Time Warner 35 billion in stocks, 10 billion in cash, and five billion in debt relief. Schmidt went on to say that the plans for a merger have been “long overdue.”
The Chairman of the Federal Communications Commission Michael Powell said that if consumers would be affected negatively, then “we would stop it.” Powell also said he was “hesitant to say yes,” when asked is the merger would qualify as a monopoly, but the FCC will only investigate if the merger pulls through. Yahoo Inc, (charts) and Microsoft Inc. (charts) were stunned by the news of Googles bid, William Gates, the CEO of Microsoft told reporters “I never would have guessed.”