Time Magazine 2015 Annual Report Download - page 92

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TIME WARNER INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
In connection with the Time Separation, the Company received $1.4 billion from Time Inc., consisting of proceeds
relating to Time Inc.’s acquisition of the IPC publishing business in the U.K. from a wholly-owned subsidiary of Time
Warner and a special dividend.
Acquisitions
iStreamPlanet
In August 2015, Turner acquired a majority ownership interest in iStreamPlanet, a provider of streaming and cloud-
based video and technology services, for $148 million, net of cash acquired. As a result of Turner’s acquisition of the
additional interests in iStreamPlanet, Turner recorded a $3 million gain on a previously held investment accounted for under
the cost method and began consolidating iStreamPlanet in the third quarter of 2015. In connection with the acquisition, $29
million of Redeemable noncontrolling interest was recorded in the Consolidated Balance Sheet.
Eyeworks
On June 2, 2014, Warner Bros. acquired the operations outside the U.S. of Eyeworks Group, a television production
and distribution company, which are located in 15 countries (across Europe and South America and in Australia and New
Zealand) for approximately $267 million, net of cash acquired.
CME
Central European Media Enterprises Ltd. (“CME”) is a publicly-traded broadcasting company operating leading
networks in six Central and Eastern European countries. During 2014 and 2013, the Company acquired additional interests in
CME for $396 million and $288 million, respectively. For more information about the Company’s investments in and
transactions with CME, see Note 4.
HBO Asia and HBO South Asia
In September 2013, Home Box Office purchased its partner’s interests in HBO Asia and HBO South Asia (collectively,
“HBO Asia”) for $37 million in cash, net of cash acquired. HBO Asia operates HBO- and Cinemax- branded premium pay,
basic tier television and streaming services serving over 15 countries in Asia. As a result of this acquisition, Home Box
Office owns 100% of HBO Asia and has consolidated its results of operations and financial condition effective
September 30, 2013. For the year ended December 31, 2013, Home Box Office recognized a $104 million gain upon Home
Box Office’s acquisition of its former partner’s interests in HBO Asia.
Summary of Discontinued Operations
Discontinued operations, net of tax, for the year ended December 31, 2015 was income of $37 million ($0.04 of diluted
net income per common share), primarily related to the final resolution of a tax indemnification obligation associated with
the disposition of Warner Music Group in 2004.
For the years ended December 31, 2014 and 2013, discontinued operations primarily reflect the results of the
Company’s former Time Inc. segment. In addition, during 2013, the Company recognized additional net tax benefits of $137
million associated with certain foreign tax attributes of Warner Music Group.
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