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Time Warner and cable unit announce separation, dividend information

Darren Murph

We knew last month that Time Warner was looking to spin off its Time Warner Cable unit, but now the nitty-gritty details are starting to surface. Parent company Time Warner, Inc. will receive a $9.25 billion one-time cash dividend in the transaction, while TWC will "borrow $10.9 billion to fund the payout to its parent, which owns 84 percent, and other shareholders." CEO Jeffrey Bewkes was quoted as saying that "Time Warner no longer needs to own a cable operator to carry its movies and TV shows because it has established brands and more options for distribution," though the exact distribution form hasn't been decided upon just yet. [Disclosure: Engadget is part of the Time Warner family]

[Thanks, J. Goodwin]

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