SEC Filings

WARNER MEDIA, LLC filed this Form 425 on 02/25/2000
Entire Document

Q.   What are some of the strategic advantages that Time Warner expects to gain
     from the merger with America Online?

A.   The combination of Time Warner's world-class media brands, subscriber bases
     and technologically advanced broadband delivery systems with America
     Online's renowned consumer online brands, subscriber base and extensive
     Internet infrastructure and expertise will provide AOL Time Warner with
     strengths and synergies in all its businesses.  AOL Time Warner's multiple
     brands, vast array of content, extensive infrastructure and strong
     distribution capabilities will provide it with a greater capacity to
     capitalize on and propel the convergence of media, entertainment and
     communications than Time Warner (or America Online) alone.  There are also
     strategic benefits of combining Time Warner's broadband infrastructure with
     America Online's established success in managing consumer migration online.
     The strategic combination will accelerate the digital transformation of
     Time Warner by infusing all of Time Warner's businesses with a heightened
     digital focus.

Q.   What are some of the ways in which Time Warner expects the merger to
     increase the potential for growth?

A.   The combination of Time Warner and America Online is expected to strengthen
     the ability of these companies to generate growth in revenue, earnings
     before interest, taxes and amortization, or "EBITA," earnings before
     interest, taxes, depreciation and amortization, or "EBITDA," and cash flow.
     In particular:

        . America Online's extensive Internet infrastructure is expected to
          provide a new and expanding distribution medium for Time Warner's
          popular brands, thereby giving its content businesses increased access
          to the consumer; and

        . Time Warner's advanced broadband delivery systems are expected to
          provide an important distribution platform for America Online's
          interactive services, which is expected to result in incremental
          subscriber growth.

     In addition:

        . in the music business, AOL Time Warner will bring together Time
          Warner's prestigious labels and roster of established and new artists
          with America Online's established e-commerce capabilities; and