Time Warner To Spin-Off Cable Division Next Month

Posted Feb 27, 2009

?Both companies will be better positioned to compete, with capital structures more suited to their respective needs,? stated Time Warner CEO Jeffrey Bewkes.

Time Warner’s spin-off of Time Warner Cable should be completed by next month.  This will make Time Warner purely a media company.  Time Warner initiated the separation possibility of separating its telecommunications cable operations from their content units about four years ago.

This will enable Time Warner to focus on their major media brands such as CNN, HBO, Time magazine, Sports Illustrated, and the Warner Bros. movie studio.

The terms for separating the companies were agreed upon on May 20, 2008.  Since then, it was subject to the government regulation process.  Within the last few weeks, the separation was approved by the FCC and the IRS.  The separation should be complete by March 12.

[via NYT]