Time Warner Cable spinoff date set
EmptyTime Warner finally will spin off its cable unit March 27, and later that day it will reverse-split its stock, giving one share for every three held.
Time Warner will issue the 901 million Time Warner Cable shares it holds to shareholders, and Time Warner Cable also will effect a 1-for-3 reverse stock split, though on March 12, so the distribution ratio reflects the Time Warner Cable reverse split but not Time Warner's.
The distribution of Time Warner Cable stock to Time Warner shareholders qualifies as a tax-free transaction, the companies said.
Time Warner Cable also said Thursday that it will pay its shareholders a special dividend of $10.27 a share, amounting to about $10.9 billion, with a record date of March 12. Time Warner, because it is such a large shareholder, will get about $9.3 billion of that dividend.
After the transactions, Time Warner no longer will hold shares of Time Warner Cable.
"We're confident that this separation will benefit Time Warner and Time Warner Cable stockholders," Time Warner chairman and CEO Jeff Bewkes said.
"At the remaining Time Warner businesses, we'll stay focused on what we do best: creating, packaging and distributing our branded, high-quality content."