AOL Time Warner Looks To NTL For Possible Euro Partnership

US media giant AOL Time Warner is thought to be considering NTL as a possible partner for boosting its European revenues. AOL’s extensive US cable network is not currently matched by its capabilities in Europe, while NTL enjoys the largest share of the UK’s cable market, with 7.8m homes passed for its services.

NTL confirmed today that talks with AOL were in progress, albeit at an early stage. “Some form of joint activity could result,” said a spokesperson, although details and dates are yet to be settled.

A distribution deal with NTL could benefit AOL by opening up the possibilities of the European market. It would also represent a boost for the financially challenged NTL, which last week secured $388m in investment from GE Capital, only partly easing the worries of investors over its earning ability versus infrastructure investment costs.

Paul Hodges, CEO of Europe-based internet broadcasting company Virtue Broadcasting said today that he viewed the possible deal as a “positive endorsement of belief in broadband as the future,” continuing, “It is also a great endorsement of broadband in Europe, to have the biggest content provider in the world looking to enter the market.” He added that he hoped such a deal would provide a wake-up call to European content providers to begin creating the volume of quality content currently generated across the Atlantic.

AOL Time Warner: www.aoltimewarner.com NTL: 01252 402 000 www.ntl.co.uk

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