Time Warner spins off cable business

By Lisa Kerner

Charlotte, N.C., March 13 - Time Warner Inc. completed its tax-free spinoff of Time Warner Cable Inc. on Thursday.

On March 27, Time Warner will distribute a pro rata dividend of all its Time Warner Cable common stock to Time Warner stockholders of record as of 8 p.m. ET on March 12, according to a form 8-K filed with the Securities and Exchange Commission.

Shares of Time Warner common stock will continue to trade "regular way" on the New York Stock Exchange through and including the distribution date of March 27, Time Warner said.

In May 2008, it was announced that the boards of directors of Time Warner and Time Warner Cable approved an agreement that would result in the complete legal and structural separation of the two companies.

"Both companies will be better positioned to compete, with capital structures more suited to their respective needs as well as greater operational, financial and strategic flexibility," Time Warner chairman and chief executive officer Jeff Bewkes said in a Friday news release.

Time Warner also announced that its board of directors approved a one-for-three reverse stock split of the company's common stock effective at 7 p.m. ET on March 27 after the distribution of its Time Warner Cable common stock is complete.

Time Warner is a New York-based media and entertainment company. Time Warner Cable is the second-largest cable operator in the United States.

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