Time Warner and cable unit announce separation, dividend information

by Darren Murph, posted May 22nd 2008 at 10:42AM

We knew last month that Time Warner was looking to spin off its Time Warner Cable unit, but now the nitty-gritty details are starting to surface. Parent company Time Warner, Inc. will receive a $9.25 billion one-time cash dividend in the transaction, while TWC will "borrow $10.9 billion to fund the payout to its parent, which owns 84 percent, and other shareholders." CEO Jeffrey Bewkes was quoted as saying that "Time Warner no longer needs to own a cable operator to carry its movies and TV shows because it has established brands and more options for distribution," though the exact distribution form hasn't been decided upon just yet. [Disclosure: Engadget is part of the Time Warner family]

[Thanks, J. Goodwin]

Filed under: Industry, Cable

Tags: business, cable, industry, media, spinoff, time warner, time warner cable, TimeWarner, TimeWarnerCable, twc

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Reader Comments (Page 1 of 1)

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Kiwi616 @ May 22nd 2008 11:29AM

I had submitted this yesterday with no credit......blah!

Neutral

J.Goodwin @ May 22nd 2008 12:42PM

I also submitted it yesterday, but you should also get credit. Maybe there was a whole raft of submissions and I just got lucky.

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