All three companies will contribute assets including patents, software, cash, people and capital equipment.
Despite the 50-50 ownership, AT&T would contribute $2 billion worth of assets to the new venture, while British Telecom would contribute assets worth only $1.4 billion.
"Whenever you contribute assets to a charitable entity and claim a tax deduction for having done so, you imbue the public with an interest in these assets," he said.
Under Sharia, corporations can take a number of forms, but the most common in Saudi Arabia is Sharikat Modarabah where some partners contribute assets and others contribute expertise.
Generally each person contributes assets and share risks.
Baker explains that although AOL contributed assets, it doesn't govern any part of the foundation.
Here's how it worked: The government contributed assets to a partnership that was financed by a private investor.
Spyglass, which is controlled by Mr. Barber and Mr. Birnbaum, is a film production and financing company that is contributing assets to the restructured MGM.
Both deals were structured as partnerships, with Tribune contributing assets – Newsday in one deal, the Cubs in the other – in exchange for cash payouts and a small percentage of each partnership.
In return for the contributed assets, Mr. Saunders and Mrs. Saunders receive small general partnership interests (1% for each of them; 2% total) as well as limited partnership interests (49% for each of them; 98% total) for the aforementioned contributed assets.
We're told Portico's contributed assets, which includes a membership base of 2,500 people and lease interests in 80 luxury vacation homes, are part of the transaction.
