Time Warner Allocates Cable Shares to Stockholders

On March 27, Time Warner Inc. announced that it began to distribute cable shares amongst Time Warner stockholders. In compliance with the division of Time Warner Inc. and Time Warner Cable, which became official on March 12, Time Warner Inc. also announced that it utilized a one-for-three reverse stock split for the company’s common stock. The stocks will reflect this reverse split today.

"We're excited about Time Warner's future as one of the leading pure content companies in the world. We remain focused on using our industry-leading scale and brands to create, package and distribute high-quality content on multiple platforms globally,” stated Time Warner Chairman and CEO, Jeff Bewkes. “The current economic environment is challenging, but we’re going to continue to run our businesses as efficiently as possible, while investing even more in the top-notch content that defines our brands. I'm confident that we'll emerge from this downturn in an even stronger position to generate consistent, attractive financial results and improve returns to our shareholders."

Stockholders will collect shares of the company’s common stock with no action required. Time Warner stockholders, who held stock at the record date of March 12, will receive a book-entry account statement detailing the credited ownership of Time Warner Cable shares. The Internal Revenue Service (IRS) deemed the distribution of Time Warner Cable common stock a tax-free transaction.

The reverse stock split, or merging of shares at a one-for-three ratio, will become effective today at 7 p.m. There were 3,589,474,552 shares of Time Warner common stock, as of March 12. Approximately 1.2 billion shares remain after completion of the reverse stock split.