Time Warner To Spin Off AOL Dec. 9th
November 17, 2009 at 1:30 PM (PT)
REUTERS reports that TIME WARNER INC. will spin off its AOL unit to shareholders on DEC. 9th. TW shareholders of record on NOV. 27th will receive an AOL stock dividend for every 11 shares of TIME WARNER common stock they hold.
AOL's market capitalization value for the 1.17 billion outstanding shares, based on TIME WARNER's closing stock price of $32.35, is approximately $3.44 billion. That's a far cry from the $163 billion AOL was valued at when it merged with TIME WARNER.
In MAY of this year, TIME WARNER announced its intentions to spin off AOL as it focuses on being a content company. It appointed former GOOGLE INC. sales executive TIM ARMSTRONG CEO of AOL to prepare the company for life as an independent business.
ARMSTRONG has dramatically restructured the company and cut staff to prepare for the spin. It noted in a NOV. 12th regulatory filing that it expects to take $200 million in additional restructuring charges between the current quarter and through the first half of 2010.
AOL common stock will begin trading on a "when-issued" basis on the NYSE on NOV. 24th and will start trading under the 'AOL' symbol on DEC. 10th.