Time Warner Inc’s plan to split off its cable services division – widely expected by many and welcomed by some — raises just as many questions as it answers.

When is the split going to take place, for instance? And how? And what does this mean for AOL? Is it next up for a separation? Remember, Time Warner has already held discussions to merge the AOL unit with Yahoo Inc.

(Speaking of which, The Wall Street Journal says Microsoft could be making its next move in the takeover saga for Yahoo as early as Wednesday. One possibility: nominate a proxy slate of directors to replace the board at Yahoo. Also, Microsoft has considered earnmarking $1.5 billion to retain Yahoo employees should it win the company, Reuters says.)

At Time Warner, meanwhile, splitting off of the cable services division would mark the latest move by CEO Jeffrey Bewkes to revamp the company, whose stock price has lost a third of its value since the beginning of 2007.

Despite his efforts, first quarter earnings fell slightly more than expected. The breakdown: cable services were strong, with revenue up 8 percent, and AOL struggled, with revenue down 23 percent.

Keep an eye on:

• Paramount Pictures, which last year cast its lot exclusively with the ill-fated HD DVD home video format, enters the Blu-ray world with titles “Face/Off,” “Next” and “Bee Movie”. (Hollywood Reporter)
• A committee to protect editorial integrity at The Wall Street Journal said it will be more active in the search of a new managing editor for the paper after being blindsided by the resignation of Marcus Brauchli (Reuters)
• CBS Corp and NBC Universal plan to bid for the Weather Channel in the second round of bidding due in early to mid-May, sources say (Reuters)

(Photo: Reuters)