NEW YORK: Entertainment and media giant Time Warner will reap a $9.25 billion (€5.87bn; £4.67bn) special dividend after splitting from its cable division. The cash will be used to pay-down debt and is more than twice the $4bn expected by the market.
The downside is that Time Warner Cable is now weighed down with $24bn in debt, which analysts believe will limit its ability to do deals or roll out new services.
It is the first major strategic decision by TW ceo Jeff Bewkes since he ascended to the throne in January. Following the divestment, he will focus on the future of AOL, the company's ailing online arm.
Data sourced from Wall Street Journal Online; additional content by WARC staff