Time Warner to unplug cable

22 May 2008

US media giant Time Warner’s board has given its seal of approval to plans to spin off its cable unit. The split is expected in the fourth quarter of 2008 and will take place in three stages. Time Warner will receive a USD10.9 billion dividend from the cable company which the newly created unit, Time Warner Cable, will take out loans to pay. The cable operator already has net debt of USD13 billion. Time Warner’s CEO Jeffrey Bewkes said, ’After the transaction, each company will have greater strategic, financial and operational flexibility and will be better positioned to compete’. According to TeleGeography’s GlobalComms database, Time Warner Cable provides television, telephony and high speed internet services via its networks which pass 26.3 million homes in 33 states

United States, Time Warner Cable (Spectrum)