AOL to sell its stake in Comedy Channel

Viacom is to pay AOL $1.2bn in cash for its 50% stake in Comedy Channel, which is jointly owned by the two companies.

When the deal is closed in the next couple of months, Comedy Channel will be wrapped into MTV Network’s group of basic cable channels. MTV Network is owned by Viacom.

AOL Time Warner has huge debts. It recently sold its investment in communications services company GM Hughes, in a bid to cut debts.

On Tuesday, AOL agreed to settle its debts with WorldCom, whom it is to pay $15.9m under a court-approved settlement