Bewkes: It's Time to Spin Time Warner Cable
Jeff Bewkes, who succeeded Richard Parsons as Time Warner's CEO at the start of the year, said that the company has "decided that a complete structural separation of Time Warner Cable... is in the best interests of both companies' shareholders."
Time Warner, which posted first quarter numbers today, owns 84 percent of Time Warner Cable.
And what of the separation deal details? "We’re working hard on an agreement with Time Warner Cable, which we expect to finalize soon," Bewkes added.
Sanford C. Bernstein & Co. Inc. analyst Craig Moffett wrote Monday that Time Warner Cable "warrants a premium, in our view, due to what will then be a genuinely independent public ownership structure." The firm rates the MSO with an "Outperform" rating, and a 12-month target price of $42.
Time Warner Cable shares were up 45 cents (1.63%) to $28.07 each in early morning trading Wednesday.
— Jeff Baumgartner, Site Editor, Cable Digital News