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Definitive Agreement Between EarthLink and Time Warner Cable Revitalizes Broadband Cable Internet Access

Strategic Insights

— 1 min read

EarthLink (Nasdaq:ELNK) and Time Warner Cable have reached a definitive agreement to provide consumers with multiple high-speed Internet service providers (ISPs) over Time Warner Cable's broadband networks. This partnership is the cable industry's most extensive collaboration with an unaffiliated ISP, marking a significant advancement in broadband cable Internet access. The agreement is poised to become a model for future broadband cable alliances, benefiting both Time Warner Cable and EarthLink.

Key Takeaways:

  • The EarthLink-Time Warner Cable agreement represents the cable industry's most far-reaching partnership with an unaffiliated ISP, providing consumers with choice among multiple high-speed ISPs.
  • The partnership is a win for consumers, driving the development of broadband cable Internet access and serving as a model for future alliances.
  • America Online and Time Warner have extended the FTC's review period for two weeks beyond November 30 to allow for consideration of the agreement's technical and other details.
  • The companies expect to close their merger by the end of the year or early 2001, subject to regulatory approvals.
  • The forward-looking statements included in the agreement are based on management's current expectations and are naturally subject to uncertainty, as reflected in the company's filings with the Securities and Exchange Commission.
  • The merger of Time Warner and America Online is subject to various risks and uncertainties, including the integration of the businesses, the costs associated with the merger, and the inability to obtain necessary regulatory approvals.

Statistics:

  • The partnership between EarthLink and Time Warner Cable represents a significant advancement in broadband cable Internet access.
  • The agreement is expected to become a model for future broadband cable alliances.
  • The merger of Time Warner and America Online is expected to be completed by the end of the year or early 2001.

Sources:

  • Business Wire, "EarthLink and Time Warner Cable Reach Definitive Agreement" (Nov. 20, 2000)
  • Business Wire, "America Online and Time Warner Extend FTC Review Period for EarthLink-Time Warner Cable Agreement" (Nov. 20, 2000)
  • Securities and Exchange Commission, Time Warner Form 10-Q (previously filed)
  • Securities and Exchange Commission, America Online Form 10-K (previously filed)

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