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American Morning

Minding Your Business: Ted's Turned Off

Aired May 06, 2003 - 07:52   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


BILL HEMMER, CNN ANCHOR: Our founder here at CNN, Ted Turner, has sold more than half of his stake in AOL Time Warner. That's a lot of shares and a lot of money.
Andy Serwer is looking into that and the market news today.

And an obvious question here, if you're investing: Why now?

ANDY SERWER, "FORTUNE" MAGAZINE: Yes. Well, a lot of chit-chat in the Time Life Building here and all over AOL...

HEMMER: Yes.

SERWER: ... and investors all over Wall Street, Ted Turner selling 60 million shares for $800 million, more than half of his stake in this company. He owns 40 million plus now.

And the question is, you know, why? Why is he selling out? And I think he's giving up. He's at least -- you know, he's hedging his bets by keeping the 40 million shares, but basically, you know, he's decided that the company is not going the way he wants it to go, and he is bailing out.

You know, a lot of concern obviously by people who still own the stock. But here is my point about this: If Ted Turner was so smart -- and he is a very smart guy -- but he did not sell at the top, OK?

HEMMER: Yes.

JACK CAFFERTY, CNN ANCHOR: That's a good point.

SERWER: So, he didn't sell at $60.

(CROSSTALK)

HEMMER: In hindsight, he would have probably liked to have gotten out two years ago.

SERWER: Well, that's right. But he believed in the merger just like most other people did.

HEMMER: Yes.

CAFFERTY: Sure.

SERWER: So, you know, we'll look back five years from now -- you can see, he has lost a lot of money. You know, he still has 1.7, so we're not shedding any tears -- that's billions, people. But he did have 8 billion. So, he's left a lot on the table. But, you know, we'll look back five years from now and say -- you know, when this stock is either at $13 still...

HEMMER: Yes.

SERWER: ... or $8 or $30, and say he was either very smart or not smart at all. And, of course, he's still hedging his bet by keeping that $40 million stake.

HEMMER: And I hope he's wrong.

HEIDI COLLINS, CNN ANCHOR: Yes, me, too. The obvious question is, if I'm an AOL shareholder sitting at home...

SERWER: Right.

COLLINS: ... hearing this news...

SERWER: Right.

COLLINS: ... I mean, does this just set off a few alarms? I mean, will people just panic and everybody sell it?

SERWER: Well, I think the stock will probably be a little weaker today. But, you know, again, you know, the stock has drifted down below 10. It's been in this neighborhood for a while. So, I don't see the thing going down a lot.

An interesting point here also, people are suggesting he may be raising this money to buy those Atlanta sports teams that apparently are on the block.

HEMMER: We've got the Braves, the Thrashers and...

(CROSSTALK)

SERWER: The Hawks and Thrashers, that's right.

COLLINS: Do you really think?

SERWER: You know, I'm not sure. I mean, he loves those babies.

(CROSSTALK)

SERWER: And, you know, apparently they're for sale. So, we'll have to see about that.

HEMMER: Thank you, Andy.

SERWER: OK.

COLLINS: Thanks, Andy.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.






Aired May 6, 2003 - 07:52   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BILL HEMMER, CNN ANCHOR: Our founder here at CNN, Ted Turner, has sold more than half of his stake in AOL Time Warner. That's a lot of shares and a lot of money.
Andy Serwer is looking into that and the market news today.

And an obvious question here, if you're investing: Why now?

ANDY SERWER, "FORTUNE" MAGAZINE: Yes. Well, a lot of chit-chat in the Time Life Building here and all over AOL...

HEMMER: Yes.

SERWER: ... and investors all over Wall Street, Ted Turner selling 60 million shares for $800 million, more than half of his stake in this company. He owns 40 million plus now.

And the question is, you know, why? Why is he selling out? And I think he's giving up. He's at least -- you know, he's hedging his bets by keeping the 40 million shares, but basically, you know, he's decided that the company is not going the way he wants it to go, and he is bailing out.

You know, a lot of concern obviously by people who still own the stock. But here is my point about this: If Ted Turner was so smart -- and he is a very smart guy -- but he did not sell at the top, OK?

HEMMER: Yes.

JACK CAFFERTY, CNN ANCHOR: That's a good point.

SERWER: So, he didn't sell at $60.

(CROSSTALK)

HEMMER: In hindsight, he would have probably liked to have gotten out two years ago.

SERWER: Well, that's right. But he believed in the merger just like most other people did.

HEMMER: Yes.

CAFFERTY: Sure.

SERWER: So, you know, we'll look back five years from now -- you can see, he has lost a lot of money. You know, he still has 1.7, so we're not shedding any tears -- that's billions, people. But he did have 8 billion. So, he's left a lot on the table. But, you know, we'll look back five years from now and say -- you know, when this stock is either at $13 still...

HEMMER: Yes.

SERWER: ... or $8 or $30, and say he was either very smart or not smart at all. And, of course, he's still hedging his bet by keeping that $40 million stake.

HEMMER: And I hope he's wrong.

HEIDI COLLINS, CNN ANCHOR: Yes, me, too. The obvious question is, if I'm an AOL shareholder sitting at home...

SERWER: Right.

COLLINS: ... hearing this news...

SERWER: Right.

COLLINS: ... I mean, does this just set off a few alarms? I mean, will people just panic and everybody sell it?

SERWER: Well, I think the stock will probably be a little weaker today. But, you know, again, you know, the stock has drifted down below 10. It's been in this neighborhood for a while. So, I don't see the thing going down a lot.

An interesting point here also, people are suggesting he may be raising this money to buy those Atlanta sports teams that apparently are on the block.

HEMMER: We've got the Braves, the Thrashers and...

(CROSSTALK)

SERWER: The Hawks and Thrashers, that's right.

COLLINS: Do you really think?

SERWER: You know, I'm not sure. I mean, he loves those babies.

(CROSSTALK)

SERWER: And, you know, apparently they're for sale. So, we'll have to see about that.

HEMMER: Thank you, Andy.

SERWER: OK.

COLLINS: Thanks, Andy.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.