Several of the installments in my ongoing "Media DE-consolidation" series have involved Time Warner taking apart the media mega-company it created back in 2000. [See, for example, parts 12, 14 and 21]. The relationship was a bit rocky right from the start, and things have been unraveling slowly ever since. You will recall the amazing front page story in the Wall Street Journal in 2006 in which Time Warner President Jeff Bewkes declared the death of â€œsynergyâ€ and, more poignantly, Bewkes went so far as to call synergy â€œbullâ€”tâ€!
Today, another major split occurred when, as many had anticipated for some time now, TW announced the spin-off of its Time Warner Cable unit. Here's the NYT's summary:
Jeffrey L. Bewkes, the chief executive of Time Warner, continued to trim what has for years been the worldâ€™s largest media company by announcing Wednesday that it would completely spin off its cable company. The news â€” which was not unexpected and follows an earlier transaction in which a portion of the cable unit was spun off into a separate public company â€” came as Time Warner reported quarterly earnings that were largely in line with Wall Streetâ€™s expectations. â€œWeâ€™ve decided that a complete structural separation of Time Warner Cable, under the right circumstances, is in the best interests of both companiesâ€™ shareholders,â€ Mr. Bewkes said Wednesday in a statement. â€œWeâ€™re working hard on an agreement with Time Warner Cable, which we expect to finalize soon.â€