Time Warner Inc., looking to make its presence better felt in Central and Eastern Europe, agreed Monday to purchase a 31 percent stake in Central European Media Enterprises Ltd. for US$241.5 million, Dow Jones Newswires reported Monday.

Time Warner's cash resources come from the $9.25 billion it received from selling its cable arm. The company said that it would use $2 billion to pay off debts.

The two companies will also open new TV stations with some programmes carrying the Warner Bros. brand. CME operates TV networks in Bulgaria, Croatia, Czech Republic, Romania, Slovakia, Slovenia and Ukraine.

With Time Warner seeking to increase its growth prospects and disseminate information worldwide and recession-dented CEM being able shore up its plummeting cash flows, the deal is mutually beneficial. Moreover, Time Warner acquired the stake at depressed prices, Dow Jones reported in an article posted by CNN Money.

"This is a great move on Time Warner's part, because they are buying into a company with attractive long-term growth prospects at the bottom of the market," said Miller Tabak & Co. analyst David Joyce, told Dow Jones.