May 1, 2008
Time Warner Will Spin Off Cable Subsidiary
The dismantling of the failed Time Warner-AOL merger continues. Time Warner announced that it would spin off Time Warner Cable, its 84% owned subsidiary and the second largest provider of cable television, high-speed Internet, and telephone service. The cable company needs to invest in capital improvements, but much of its excess cash has gone back to Time Warner.
Next Time Warner is expected to focus on the future of AOL. Previously Time Warner had discussions with Yahoo about combining AOL's advertising platform and Yahoo's portal, in an effort to thwart Microsoft's bid for Yahoo, but there does not appear to be any progress on those talks. WPost, Time Warner To Spin Off Cable; NYTimes, Time Warner Refocusing With Move to Spin Off Cable.
Meanwhile, Microsoft's board reportedly met yesterday to discuss the Yahoo bid, but no public announcement of its plans yet. NYTimes, Microsoft’s Board Meets on Yahoo Bid; WSJ, Microsoft Fails to Reach Yahoo Decision.
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