Time Warner, recently under fire for implementing a tiered bandwidth price structure and targeting iTunes and Amazon Unboxed users with the practices of its cable division, has decided to dump Time Warner Cable. Time Warner Cable is the second largest cable internet services provider in the United States, falling behind ComCast by a small margin.

Running a cable services company requires an entirely different operation strategy than running Time Warner’s other holdings. Time Warner made the decision that Time Warner Cable did not mesh with its other interests. The company is not divesting the division because of performance: Time Warner Cable’s earning were up from last year at last check.

In a statement released to the press, Time Warner CEO Jeff Bewkes said “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.” With time Warner holding 84 percent of Time Warner Cable stock the split should be relatively painless and uncomplicated.

Time Warner Cable has nearly 15 million subscribers to its cable internet services. There is no word on how a split may effect the subscribers, if it will at all. Time Warner divesting Time Warner Cable will free the parent company to concentrate on its other holdings, which include the brands AOL LLC., Home Box Office, Turner Broadcasting System, New Line Productions, Inc., Warner Bros. Entertainment, Inc., Time Inc., UBU Productions and all of the properties and products owned by each brand.

Related:

Entry was posted on Thursday, May 1st, 2008 at 1:26 pm under Internet.

Read more entries by Leslie Poston.
Stumble It!