Wednesday, October 31, 2007

Practice News Story # 8 Business

Oct. 31, 2007

Palo-Alto California—Google Inc has made a hostile takeover bid involving the purchase of Time Warner Inc. for a sum of 60 billion dollars in debt, cash, and stocks

This offer came "out of the blue", as Time Warner CEO Richard D. Parsons stated today. Parsons explained that Time Warner will need to do a lot of their own analysis to determine their decision, but that they are interested in negotiation. Parsons expects Time Warners full decision to take a couple of months.

Dr. Eric Schmidt CEO and chairman of Google told us that Google had overpriced the actual value of Time Warner by 10 billion dollars. In response to why google was so interested in this acquisition schmidt stated," we have relied on consumer production of our content" and added "We have no content production of our own".

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