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Time Warner To Shed Remainder Of Its Cable Unit Amid Investor Pressure
[May 01, 2008]

Time Warner To Shed Remainder Of Its Cable Unit Amid Investor Pressure

(InvesTrend Via Acquire Media NewsEdge)
May 1, 2008 (FinancialWire) Time Warner Inc. (NYSE: TWX) said that it
plans to spin off the rest of its cable TV business, Time Warner Cable
(NYSE: TWC), amid investor pleas to further simplify the company s
sprawling corporate structure.
Time Warner, which is the second largest cable TV operator in the
country after Comcast Corp. (NASDAQ: CMCSA), has contemplated what to
do with AOL for some time, and sold a five percent stake in the
division to Google Inc. (NASDAQ: GOOG) in late 2005 for $1 billion,
spurning an approach from Microsoft Corp. (NASDAQ: MSFT). Time Warner's
decision to be acquired by AOL back in 2000 led to a host of problems,
including massive write-downs after accounting improprieties emerged at
The news came as Time Warner, which also owns Warner Bros., CNN, AOL
and Time magazine, posted a 36 percent decline in first-quarter
earnings from a year ago, when it had a gain from the sale of AOL's
Internet access business in Germany.
Time Warner did not disclose details on how or when the split with its
largest operating division would occur, but said it was close to an
agreement with the board of Time Warner Cable.
Time Warner earned $771 million in the first three months of the year,
down from $1.2 billion a year ago. Revenues rose two percent to $11.42

billion. Shares of Time Warner fell 42 cents to close at $14.85.
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