Time Warner Boss Taking a 'Hard Look' at Cable Spinoff

20 September 2007

NEW YORK: Time Warner chairman/ceo Richard H Parsons - one eye warily cast over his shoulder at interventionist billionaire shareholder Carl Icahn (pictured) - has let it be known that the world's largest media group is mulling the sale of its cable division.

Such a move has been urged on TW by Icahn who since acquiring his stake in 2005 has been agitating for a sell-off. In June 2006, he increased his holding to 49.6 million shares - equivalent to around eight percent of the company.

Addressing a Goldman Sachs conference earlier this week, Parsons said that TW is considering a spin-off. "We are not closed-minded, we are open-minded. We are just about now in the zone where we can take another hard look at that."

The change in attitude stems from fiscal circumstances: from April 2008 the proceeds of a sale would no longer be subject to taxation.

Data sourced from Financial Times; additional content by WARC staff