2 Japanese firms want to get Time Warner know-how

October 04, 1991|By Asahi News Service

TOKYO -- Toshiba Corp. and C. Itoh & Co.'s move to invest $1 billion in a multimedia company to be created by Time Warner Inc. is aimed at gaining access to the U.S. media giant's film and video library and cable television know-how, officials with the Japanese companies said.

The officials acknowledged that an agreement in principle among the three companies has been reached involving joint investment in the new entertainment media venture.

"Since we will be free to use Time Warner's video software, [the capital participation] will bring the same advantages as an acquisition would," said an executive with C. Itoh.

Toshiba and C. Itoh will each acquire a 6.25 percent stake in the new company for $500 million.

The two Japanese companies will initial an agreement with Time Warner as early as the end of October and put up capital next spring, officials said.

The deal may also help improve the financial standing of Time Warner, ailing from debts of more than $10 billion.

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