AOL's Parsons says cable system IPO an option

NEW YORK: AOL Time Warner chief executive-designate Richard Parsons said on
Thursday he plans to simplify the media giant's structure as one of his major
goals, including the possible initial public offering of the company's cable
systems.

At an investor conference in New York, Parsons said that he was in active
discussions with AT&T Corp. and Comcast Corp. executives to resolve the
issues surrounding Time Warner Entertainment, which is a venture between AOL and
AT&T that embodies Warner Brothers, HBO and some of AOL's cable systems.

He said the parties were discussing a range of options, which could include a
possible IPO. However, he said an IPO of AT&T's Time Warner Entertainment
stake would be a "suboptimal outcome."

"We're all headed in the same direction," Parsons said. "We
just have to find the right path to get there."

He also said the company plans to have "breakthroughs" on deals to
get AOL's Internet service on other cable systems in the next several months.