p2pnet - rss feed: Time Warner, Time Warner Cable, split
p2pnet news | Products:- It’s divorce time for Time Warner Inc, the world’s largest media company, and Time Warner Cable.
They’ve decided to go their separate ways, agreeing on complete separation and a $10.9 billion one-time cash dividend.
“As part of the separation - expected to take place in the fourth quarter - Time Warner is set to reap a $9.25 billion windfall from a special $10.27-a-share dividend to be paid by the cable company,” says the Wall Street Journal.
The move will, “transform the media conglomerate into one more focused on movies, TV programming and magazines,” it says.
“This is the right step for Time Warner and Time Warner Cable stockholders,” Bloomberg News has Time Warner boss Jeffrey Bewkes saying, going on:
“We’re bullish on Time Warner Cable’s prospects, but its strategic goals and capital needs are increasingly different from those of our other businesses.”
By disposing of the 84 percent stake in Time Warner Cable, “Bewkes is responding to pressure from investors to focus on the New York-based company’s entertainment businesses and turn around the AOL Internet unit,” says the story, going on:
“Profit at AOL plunged 74 percent in the first quarter as a 1 percent increase in advertising sales failed to make up for a shrinking Web-access business.”
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.Stumble It!
Wall Street Journal - Time Warner Details Plan for Cable Arm, May 21, 2008
Bloomberg News - Time Warner, Time Warner Cable Agree on Dividend , May 21, 2008
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