Time Warner Rights Offering

Published 01 Jan 1994
Reference 4305
Industry Media Production
Region North America
Summary

The object of this case is the huge equity offering attempted by Time Warner in June/July 1991. The case outlines the position of the company and the controversial structure of the offering.

Teaching objectives

This case is designed to make students think about corporate restructuring in general by putting the rights issue into the context of the company's overall financial position. It also provides a basis for analysing a complicated financial transaction.