ATLANTA, Dec 20 (Reuters) - Time Warner Inc.'s (NYSE:TWX - news) CNN News Group agreed on Monday to take a $20 million equity stake, roughly 20 percent, in Leisureplanet, the flagship subsidiary of Leisureplanet Holdings Ltd.
The deal calls for Leisureplanet to be the exclusive travel services provider for ``almost all CNN Web sites,'' CNN said in a release.
Leisureplanet would also become the exclusive travel booking sponsor for a new CNN travel show, ``CNN Hot Spots.''
The deal calls for CNN to immediately get slightly less than a 10 percent stake in the subsidiary, plus the right to a total of no more than 20 percent over the course of the three-year agreement, which would total a $20 million investment, a Leisureplanet spokesman told Reuters.
Separately, Warburg Dillon Read and UBS Capital, the investment banking and private equity division of UBS AG, plan to invest $20 million in the parent company Leisureplanet Holdings, the travel company said.
Upon completion, Warburg and UBS would each own less than a 5 percent stake in the parent company, Kabatznik told Reuters.