Time Warner split officially a spinoff
That Time Warner and its subsidiary Time Warner Cable (TWC) were going to separate was a given, the only question was the nature of the split. Time Warner said the deal will be treated as a spin-off.
The company said there will be a distribution involving a pro rata dividend of all of the Time Warner Cable common stock held by Time Warner to Time Warner stockholders. In other words, Time Warner stockholders will get shares in TWC.
The two organizations still expect that the separation will be completed by the end of the current quarter.
In advance of the separation, TWC CEO Glenn Britt was named chairman and Peter Haje, already a board member, was appointed lead director. Britt replaces Don Logan, who will remain as a board member.
Recently elected to the TWC board of directors were Donna A. James, Edward D. Shirley, and former Senator John E. Sununu.
Jeff Bewkes, chairman and CEO of Time Warner, will be leaving the board.
The appointments will be effective upon the separation.