AOL spinoff set for Dec. 9

Stock plan finalized; shares begin trading Dec. 10

NEW YORK -- Time Warner late Monday said the the spinoff of AOL will happen on Dec. 9, with the online firm's shares starting to trade on the New York Stock Exchange under ticker symbol "AOL" on Dec. 10.

TW's board has also approved final details of the move that will result in the complete legal and structural separation of the two companies.

TW stockholders of record as of 5 p.m. on Nov. 27 will on Dec. 9 receive one share of AOL common stock for every 11 shares of TW stock.

Fractional shares of AOL will be aggregated and sold in the open market, with the net proceeds distributed pro rata in the form of cash payments to stockholders.

The AOL spinoff qualifies as a tax-free dividend to TW stockholders, but cash received in lieu of fractional shares will be taxable.

The firms also made official in a regulatory filing Monday that TW's Warner Bros.-owned Telepictures will assume responsibility for celebrity news site TMZ, which has so far been run as a joint venture with AOL. The latter will continue to provide online distribution to TMZ for a fee for at least 12 months after the spin-off though.