Time Warner distributes Time Warner Cable shares, does reverse stock split

By Angela McDaniels

Tacoma, Wash., March 27 - Time Warner Inc. began distributing Time Warner Cable Inc. shares to its stockholders and implemented a one-for-three reverse stock split of its common stock on Friday, according to a company news release.

Beginning Friday, 0.08367 shares of Time Warner Cable common stock are being distributed for each share of Time Warner common stock held as of 8 p.m. ET on March 12.

The ratio reflects the one-for-three reverse stock split of Time Warner Cable that happened on March 12 but does not reflect the reverse stock split of Time Warner that happened at 7 p.m. ET on Friday.

Friday's reverse split leaves 1.2 billion shares of Time Warner issued and outstanding.

In May 2008, 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. The tax-free spinoff was completed on March 12.

Time Warner is a media and entertainment company, and Time Warner Cable provides video, data and voice services. Both are based in New York.

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