TWX Takes 31% Stake in CETV

Time Warner Inc. (TWX - Snapshot Report) said it will invest $241.5 million for a 31% stake in Central European Media Enterprises, or CME, (CETV - Snapshot Report), a broadcaster in 7 Central and Eastern European countries.

The deal is expected to close before the end of the second quarter.

Time Warner's Warner Bros unit formed a partnership with CETV in a separate deal on new thematic TV channels in Central and Eastern Europe.

The leading media company's Chairman and Chief Executive Jeff Bewkes said in a report "While the region has been experiencing the impact of the global economic crisis, we believe CME is ideally positioned over the long term as Central and Eastern Europe returns to significant growth and the media sector in these countries continues to evolve."

Shares of Time Warner, a Zacks #4 Rank ("Sell") stock were up 6% to $8.33 while CETV's shares rose a whopping 30% to $13.08 in the afternoon trade.

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