The media giant has just unveiled its much-anticipated plans to spin off Time Warner Cable Inc, resulting in the complete legal and structural separation of the two companies.
Plans call for Time Warner to exchange its 12.4 percent interest in TW NY Cable Holding Inc, a subsidiary of Time Warner Cable, for 80 million newly issued shares of Time Warner Cable’s Class A common stock. Time Warner will pay a one time $10.9 billion dividend.
But financial details aside, what Time Warner has in mind is appeasing shareholders frustrated by the company’s stock price, and those calling for the company to do something with its AOL Internet unit. Presumably, with the cable plans out of the way, there will be more time to talk about AOL around the executive suite.
It’s the first big, splashy decision by Jeff Bewkes, Time Warner’s chief executive, and will have the company getting back to its roots — namely, the business of entertaining consumers on the screen and in pages of magazines. It should be interesting to watch.