UPDATE 1-Time Warner to invest $241.5 mln in broadcaster CME

                                
 * Time Warner taking 31 pct stake in CEE media group
                                
 * To launch partnership in CME's seven CEE markets
                                
 
 (Writes through, adds detail)
                                
 PRAGUE, March 23 (Reuters) - Time Warner <TWX.N> will invest
$241.5 million in Central European Media Enterprises (CME)
<CETV.O> <CETVsp.PR>, giving the U.S. media group a 31 percent
stake in CME.
                                
 The deal is expected to close by the end of the second
quarter, the central European broadcaster said in a filing on
Monday.
                                
 Separately, CME and Time Warner's Warner Bros unit will form
a partnership to launch new stations in the seven central and
eastern European markets where the former operates.
                                
 CME reaches an audience of 97 million people in Bulgaria,
Croatia, Czech Republic, Romania, Slovenia, Slovakia and
Ukraine.
                                
 It has expanded quickly in recent years in the once-booming
region which is now being battered by the global economic
crisis.
                                
 "We believe CME is ideally positioned over the long term as
central and eastern Europe returns to significant growth and the
media sector in these countries continues to evolve," Time
Warner Chairman and Chief Executive officer Jeff Bewkes said in
a statement.
 Under the deal, Time Warner will receive 19 million newly
issued CME common shares, consisting of 14.5 million shares of
class A stock and 4.5 million shares of class B stock.
                                
 Time Warner also agreed to allow CME founder and
non-executive Chairman Ronald S. Lauder to vote Time Warner's
shares for at least four years, subject to certain exceptions.
(Reporting by Jason Hovet; Editing by David Holmes)