He then became vice chairman of Warner Communications until his retirement in 1988.
Warner Communications also expressed disappointment at the number of sales.
Warner Communications, too, will make a large profit.
Time and Warner Communications share a history as builders.
Warner Communications has about $450 million in cash, and unused bank credit lines of $250 million.
A merger would make Warner Communications into an even stronger entertainment company.
Warner Communications put up $1 million for start-up costs.
In 1970, he moved to what was then Warner Communications as an executive vice president, dealing with its music record labels.
Rao was an executive at Warner Communications from 1973 to 1975.
Their owners, Warner Communications, became desperate to sell off the division.