AOL Time Warner Sells 50% Stake in Comedy Central to Viacom

Posted on May 2, 2003

AOL Time Warner Inc. announced that it will sell its 50% ownership stake in the Comedy Central cable network to Viacom Inc. Under their agreement, Viacom, which owns the other 50% stake in Comedy Central, will pay $1.225 billion in cash to AOL Time Warner. The transaction is expected to close later this quarter after the appropriate regulatory reviews.

Dick Parsons, AOL Time Warner's Chairman-elect and Chief Executive Officer, said: "This transaction, as well as the sale of our investment in GM Hughes earlier this year, demonstrates our commitment to the Company's previously announced debt reduction goals. Our expected strong Free Cash Flow generation and favorable prospects for future sales of other non-strategic assets give us confidence that we can and will achieve our debt reduction targets. We are very pleased to have reached this amicable agreement with Viacom, who have been great partners at Comedy Central."

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