Time Warner completes cable spin-off
NEW YORK (AP) – Media conglomerate Time Warner Inc. said in a securities filing Friday that it has completed its spin-off of Time Warner Cable.
The company said it disposed of all 300.3 million shares of Time Warner Cable, in line with a separation agreement set in May 2008 (story here).
Prior to the separation, the cable company paid a special cash dividend of $10.27 per share to all of its shareholders, or $10.86 billion total, which resulted in parent Time Warner receiving $9.25 billion.
Time Warner Cable also put into effect a 1-for-3 reverse stock split.
The company is the nation's second-largest cable operator, serving more than 14 million customers.
Time Warner Inc. – which owns the Time Inc. family of magazines, cable networks CNN and HBO, and movie studio Warner Bros. – will distribute the cable shares it owns to shareholders on March 27 and enact its own 1-for-3 reverse split.
For about every 12 Time Warner shares as of March 12, shareholders will get one post-split share of Time Warner Cable.