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Fox to Buy Time Warner's Regional Cable Network Turner South for $375 Million

Posted on: Wednesday, 1 March 2006, 12:01 CST

By Scott Leith, The Atlanta Journal-Constitution

Mar. 1--Time Warner's Turner South regional cable network lost $7 million in 2005 but still proved attractive enough to be sold for a handsome price.

In its annual report, which was filed late Monday, Time Warner said the company agreed to sell Turner South to Fox Cable Networks for $375 million in cash, a figure that matches the amount previously reported.

Time Warner said it expects to record a pre-tax gain of $110 million to $130 million after accounting adjustments and transactional costs. The sale, announced last Thursday, is expected to close in the second or third quarter.

Turner South had revenue of $49 million last year, Time Warner disclosed, but had an operating loss of $7 million.

Turner South is likely to be revamped as a sports-heavy network under Fox, which is part of News Corp. Fox operates several regional sports networks, including Fox Sports Net South, and had been eyeing Turner South because of the network's deals to air games for the Atlanta Braves, Hawks and Thrashers.

Time Warner also has the Braves up for sale.

Both Turner South and the Braves are operated by Atlanta-based Turner Broadcasting System.

On Monday, at an event in Atlanta, company founder Ted Turner said he was disappointed to see Time Warner sell several properties, including the Braves and Turner South.

But Turner Broadcasting's chairman and CEO, Phil Kent, said in a recent memo to employees that terms of the Turner South sale were favorable and that proceeds would be reinvested in the company.

Time Warner announced last week that Turner won't stand for re-election to the company's board of directors.

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Copyright (c) 2006, The Atlanta Journal-Constitution

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TWX, FOX, NWS,

Source: The Atlanta Journal and Constitution

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