SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
February 6, 1995
TIME WARNER INC.
(Exact name of registrant as specified in its charter)
Delaware 1-8637 13-1388520
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(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
75 Rockefeller Plaza, New York, NY 10019
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(Address of principal executive offices) (zip code)
(212) 484-8000
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(Registrant's telephone number, including area code)
Not Applicable
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(Former name or former address, if changed since last report)
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Item 5. Other Events.
On February 6, 1995, Time Warner Inc. ("Time
Warner") entered into the following related agreements:
(i) an Agreement and Plan of Merger (the "Cablevision Merger
Agreement") with Cablevision Industries Corporation
("Cablevision"), Alan Gerry, the majority stockholder of
Cablevision, and TW CVI Acquisition Corp. ("Merger Sub"), a
direct, wholly owned subsidiary of Time Warner, (ii) an
Agreement and Plan of Merger (the "CPI Merger Agreement")
with Cablevision Properties, Inc. ("CPI") and Alan Gerry, the
owner of all the capital stock of CPI, (iii) an Agreement and
Plan of Merger (the "CMP Merger Agreement" and, together with
the Cablevision Merger Agreement and the CPI Merger
Agreement, the "Merger Agreements") with Cablevision
Management Corporation of Philadelphia ("CMP and, together
with CPI, the "Merger Gerry Companies") and Alan Gerry, the
owner of all the capital stock of CMP, (iv) a Purchase
Agreement (the "Purchase Agreement") with Cablevision
Industries of Delaware, Inc. ("CID"), ARA Cablevision Inc.
("ARA" and, together with CID, the "Direct Holders"),
Cablevision Industries Limited Partnership ("CILP"),
Cablevision Industries of Saratoga Associates ("CISA"),
Cablevision of Fairhaven/Acushnet ("CFA"), Cablevision
Industries of Middle Florida, Inc. ("CIMF"), Cablevision
Industries of Florida, Inc. ("CIF" and, together with CILP,
CISA, CFA and CIMF, the "Purchase Gerry Companies") and Alan
Gerry, the sole beneficial owner of all the equity interests
in each Purchase Gerry Company, and (v) a Supplemental
Agreement (the "Supplemental Agreement") with Cablevision,
the Merger Gerry Companies, the Purchase Gerry Companies, the
Direct Holders, Alan Gerry and Merger Sub.
Pursuant to the Merger Agreements and the Purchase
Agreement, (i) a wholly owned subsidiary of Time Warner will
merge with and into Cablevision and each Merger Gerry
Company, each of which merged company will become a direct,
wholly owned subsidiary of Time Warner, (ii) Time Warner and
certain of its subsidiaries will purchase the equity
interests in certain Purchase Gerry Companies, each of which
Purchase Gerry Company will become a subsidiary of Time
Warner, and (iii) Time Warner and certain of its subsidiaries
will purchase the assets of the other Purchase Gerry
Companies. The aggregate consideration for the acquisition
of Cablevision, the Merger Gerry Companies and the Purchase
Gerry Companies (collectively, the "Cablevision Companies")
will be 2,500,000 shares of common stock of Time Warner,
3,250,000 shares each of two newly designated series of
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convertible preferred stock of Time Warner (the "Preferred
Stock"), and the assumption of the liabilities of the
Cablevision Companies, including an aggregate of
approximately $2,000,000,000 of indebtedness. The Merger
Agreements and the Purchase Agreement provide for adjustments
to the consideration to the extent that indebtedness,
negative working capital and related liabilities of the
Cablevision Companies exceed $2,057,625,000 on the closing
date.
Each series of Preferred Stock will have a
liquidation value of $100 per share, and together such series
will be convertible at any time into an aggregate of
approximately 13,540,000 shares of common stock of Time
Warner (equivalent to a conversion price of $48 per share).
One series of Preferred Stock will pay cash dividends for the
first four years at an annual rate of $3.75 per share.
Thereafter, dividends on such series will be payable in an
amount equal to dividends paid on the shares of common stock
into which the Preferred Stock of such series may be
converted. Time Warner will have the right after four years
to exchange such series of Preferred Stock for common stock
at the stated conversion price plus accrued and unpaid
dividends. Five years after the closing, Time Warner will
have the right to redeem such series of Preferred Stock for
cash at a redemption price equal to the liquidation value
plus accrued and unpaid dividends. The second series of
Preferred Stock will be identical to the first, except that
dividends will be paid at an annual rate of $3.75 per share
for five years (rather than four), and such series will be
exchangeable by Time Warner into common stock of Time Warner
after five years (rather than four).
The closing of the transactions is subject to
customary conditions for transactions of this type, including
certain regulatory approvals, as specified in the
Supplemental Agreement.
The Cablevision Companies own and operate cable
television systems serving approximately 1.3 million
subscribers principally in New York, North Carolina, Florida,
California's San Fernando Valley and Columbia, South
Carolina.
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Item 7. Exhibits
2(a) Agreement and Plan of Merger dated as of
February 6, 1995, among Cablevision Industries
Corporation, Alan Gerry, Time Warner Inc. and TW
CVI Acquisition Sub.
2(b) Agreement and Plan of Merger dated as of
February 6, 1995, among Cablevision Properties,
Inc., Alan Gerry and Time Warner Inc.
2(c) Agreement and Plan of Merger dated as of
February 6, 1995, among Cablevision Management
Corporation of Philadelphia, Alan Gerry and Time
Warner Inc.
2(d) Purchase Agreement dated as of February 6, 1995,
among Alan Gerry, Cablevision Industries of
Delaware, Inc., ARA Cablevision Inc., Cablevision
Industries Limited Partnership, Cablevision
Industries of Saratoga Associates, Cablevision of
Fairhaven/Acushnet, Cablevision Industries of
Middle Florida, Inc., Cablevision Industries of
Florida, Inc. and Time Warner Inc.
2(e) Supplemental Agreement dated as of February 6,
1995, including Annex A thereto, among Cablevision
Industries Corporation, Cablevision Industries of
Delaware, Inc., ARA Cablevision Inc., Cablevision
Industries Limited Partnership, Cablevision
Industries of Saratoga Associates, Cablevision of
Fairhaven/Acushnet, Cablevision Industries of
Middle Florida, Inc., Cablevision Industries of
Florida, Inc., Alan Gerry, Time Warner Inc. and TW
CVI Acquisition Sub.
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SIGNATURES
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this
report to be signed on its behalf by the undersigned,
thereunto duly authorized, in the City of New York, State of
New York, on February 13, 1995.
TIME WARNER INC.
By: /s/ Peter R. Haje
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Name: Peter R. Haje
Title: Executive Vice President
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EXHIBIT INDEX
Exhibit No. Description of Exhibit
2(a) Agreement and Plan of Merger dated as
of February 6, 1995, among Cablevision
Industries Corporation, Alan Gerry,
Time Warner Inc. and TW CVI Acquisition
Sub.
2(b) Agreement and Plan of Merger dated as
of February 6, 1995, among Cablevision
Properties, Inc., Alan Gerry and Time
Warner Inc.
2(c) Agreement and Plan of Merger dated as
of February 6, 1995, among Cablevision
Management Corporation of Philadelphia,
Alan Gerry and Time Warner Inc.
2(d) Purchase Agreement dated as of
February 6, 1995, among Alan Gerry,
Cablevision Industries of Delaware,
Inc., ARA Cablevision Inc., Cablevision
Industries Limited Partnership,
Cablevision Industries of Saratoga
Associates, Cablevision of
Fairhaven/Acushnet, Cablevision
Industries of Middle Florida, Inc.,
Cablevision Industries of Florida, Inc.
and Time Warner Inc.
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Exhibit No. Description of Exhibit
2(e) Supplemental Agreement dated as of
February 6, 1995, including Annex A
thereto, among Cablevision Industries
Corporation, Cablevision Industries of
Delaware, Inc., ARA Cablevision Inc.,
Cablevision Industries Limited
Partnership, Cablevision Industries of
Saratoga Associates, Cablevision of
Fairhaven/Acushnet, Cablevision
Industries of Middle Florida, Inc.,
Cablevision Industries of Florida,
Inc., Alan Gerry, Time Warner Inc. and
TW CVI Acquisition Sub.