Time Warner this morning announced that the company will be spinning off their Time Warner Cable unit as its own company. “A complete structural separation of Time Warner Cable, under the right circumstances, is in the best interest of both companies’ shareholders,” CEO Jeff Bewkes said in a prepared statement. TWC released their earnings this morning as well, which note that revenue at Time Warner Cable jumped 8% to $4.2 billion.
1 Comment to “Time Warner Splits off Cable Unit”
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Tax purposes and for investors.
The spin off TWC to its own entity. Use it as an income for TW parent company. TWC pays less taxes and TW parent pays less taxes.
When it comes to investors , people don’t want to invest in a company that is a dog , right now TW and AOL are not doing so well. If they use TWC as income on the shares for TW parent they both look good. The parent looks like a good investment because TWC pads their bottom line and TWC looks good to investors , because it’s profits.
It’s all a shell game to fool people into investing more money into a company and to decrease the amount of taxes they pay by using loop holes.
Like one of my friends recently said:
“the disease in this corporate world is the lack of real innovation and real new ideas , while being driven cruelly by stock holders with short term goals.
if your boss can’t come up with new ideas or allow his employee new idea to develop then the only thing left to do is reduce expenses , cut corners , make a quick bonus ,
and jump to another company when it gets sour.”
See a pattern ?