Time Warner and Time Warner Cable Boards Announce Separation

May 30, 2008

Time Warner and Time Warner Cable’s boards of directors have announced an agreement that will result in a complete legal separation of the two companies. Terms of the separation include Time Warner Cable paying $10.9 billion to shareholders – $9.25 billion of which will go to Time Warner. With more than 13 million subscribers, Time Warner Cable is second only to Comcast among U.S. cable providers.

Jeff Bewkes, Time Warner president and chief executive officer, said, "This is the right step for Time Warner and Time Warner Cable stockholders. After the transaction, each company will have greater strategic, financial, and operational flexibility and will be better positioned to compete. Once the transaction is completed, Time Warner will have a streamlined portfolio of leading businesses focused on creating and distributing our branded content across traditional and digital platforms worldwide"

Time Warner Cable to Be Stand-Alone Public Company

Time Warner Cable president and chief executive officer Glenn Britt said, "Today's announcement marks the next important step in Time Warner Cable's evolution as a stand-alone, public company. Our separation from Time Warner enhances our ability to compete aggressively and perform well in a highly competitive environment by delivering the innovative telecommunications services that our customers need, while making prudent investments to deliver continued value for our stockholders."

Time Warner and Time Warner Cable Separation to Take Effect This Year

The transaction is contingent on a favorable IRS ruling on the companies’ tax treatment as well as customary regulatory reviews and local franchise approvals. The transaction is expected to close in fourth quarter of this year.