Time Warner breaks off cable division

Cable company will declare a one-time dividend of $10.9 billion to shareholders, but $9.25 billion of that will go to Time Warner.

Time Warner has agreed to separate from its cable division, the company said Wednesday.

As part of the separation, Time Warner Cable has declared a one-time dividend of about $10.9 billion to stockholders, $9.25 billion of which will go to Time Warner.

"Separating the two companies...will help their management teams focus on realizing the full potential of the respective businesses and will provide investors with greater choice in how they own this portfolio of assets," Time Warner CEO Jeff Bewkes said in a release. "We're bullish on Time Warner Cable's prospects, but its strategic goals and capital needs are increasingly different from those of our other businesses."

The companies had announced plans for the split last month.

Tags:
Tech Culture
About the author

    Margaret is a former news editor for CNET News, based in the Boston bureau.

     

    Join the discussion

    Conversation powered by Livefyre

    Show Comments Hide Comments
    Latest Galleries from CNET
    A roomy range from LG (pictures)
    This plain GE range has all of the essentials (pictures)
    Sony's 'Interview' heard 'round the world (pictures)
    Google Lunar XPrize: Testing Astrobotic's rover on the rocks (pictures)
    CNET's 15 favorite How Tos of 2014
    CNET's 15 most popular How Tos of 2014