Date: 05-02-2008
Time Warner Inc. has decided to disassociate its cable company, Time Warner Cable, from the rest of the company as decreasing stock prices and losses have continued to hurt the media giant. CEO Jeffrey Bewkes announced the decision in the company’s first quarter sales report: “We’ve decided that a complete structural separation of Time Warner Cable, under the right circumstances, is in the best interests of both companies’ shareholders. We’re working hard on an agreement with Time Warner Cable, which we expect to finalize soon.” Time Warner was reportedly coaxed into making the move after the Wall Street Journal exhorted the company to refocus on its ailing media content company. American Online (AOL), one of the company’s arms, has recently suffered a steep fall in revenue, with a loss of about 23%, making it the prime culprit for the company’s overall profit decline.
