Shareholders of Time Warner have approved a $6.5 billion (£4 billion) merger with Turner Broadcasting, which operates Cable News Network (CNN). The acquisition, backed by 98.3 percent of Time Warner shareholders, must also be endorsed by Turner shareholders.

Mr Rupert Murdoch's Fox News, having just launched a rival all-news channel to CNN, has hurled a legal challenge at Time Warner and Turner, charging that their merger violates anti-trust legislation by blocking the availability of Fox in New York City.

The deal will create a group with annual sales that are expected to surpass $20 billion.