10-Q Watch: TWX: Turner Wants To Sell GameTap; No Deal Yet; Takes $18 Million Charge

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Staci D. Kramer

paidContent.org
Wednesday, August 6, 2008; 8:07 PM

Buried in the Time Warner ( NYSE: TWX) 10-Q filed today?a note that the company took an $18 million charge for Turner Broadcasting's GameTap, its much ballyhooed online video-game service that didn't deliver results to match. The charge comes "as a result of Turner's decision to sell" GameTap but I've been told there is no deal to announce. Once offered as a symbol of Turner's broadband commitment, GameTap, launched in 2005 with an ad campaign valued at $50 million, is no longer considered part of the company's core strategy.

The official comment: "There is considerable marketplace interest in the GameTap business and brand. We are considering various strategic options but have reached no final agreement as yet. When there is a resolution, we will announce it." While no one at Turner wants to say it, while the preference is to sell, one of those options could be to close the ad-supported and premium service. Turner has gone that route before, shutting down Pipeline as a premium video service.

Given the interest and investment in online gaming, it would be surprising is RealNetworks ( NSDQ: RNWK), Viacom ( NYSE: VIA), Comcast ( NSDQ: CMCSA), CBS ( NYSE: CBS), Disney ( NYSE: DIS) or another buyer doesn't pick it up?especially if Turner is really, really committed to a sale. Then again, if it hasn't been sold by now ... More as we know it.

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