Time Warner to split off cable service

Time Warner is splitting off its cable services division, the company said Wednesday.

Time Warner currently owns around 84 percent of Time Warner Cable. The media giant, which has been struggling of late, has been rumored to be discussing an AOL partnership with Yahoo.

"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 release.

The company also reported first-quarter earnings on Wednesday. Gains in its Turner cable networks and phone and broadband division were offset by slow ad sales at AOL and a decline in the Filmed Entertainment division.

Total sales for the period, which ended March 31, grew 2 percent from a year ago to $11.4 billion. Net profit fell 36 percent to $771 million, or 21 cents per share. That's down from $1.2 billion, or 31 cents per share, in the year-ago quarter, which included a boost from the sale of AOL's Internet access business in Germany.

As of March 31, the AOL service had 8.7 million U.S. access subscribers, down 647,000 from the prior quarter and down 3.3 million from the year-ago quarter. AOL's revenue fell 23 percent, or $330 million, to $1.1 billion for the three-month period just ended.

[bjlevine]

Won't help

TW's TV service is so bad here in El Paso that, given a choice between their $10/month "basic" analog service (local channels only) and $30/month DirecTV satellite service, I chose DirecTV even though I don't watch much TV. TW is just too unreliable to bear.

[bluerain44]

In NYC They Just Lost Their Monopoly Position

with the addition of Verizon FIOS. I imagine they did this to prevent the devaluation of the cable unit to affect the parent company's stock.

[aka_tripleB]

Time Warner should just drop all services

And go back to selling shows and magazines.

[as901]

Cable is broken!

I had Time Warner. They provided me with a DVR. The DVR was faulty because the software could not even be called a Beta version!

The software was badly flawed ,and Like Direct TV ,they made a choice to pretend the software flaw did not exist! That is a good way to lose clients.

To make matter worse ,Time Warner raised their rates way beyond any inflation rate ,and they did this several times!

Now that they have outpriced themselves and purchased DVRs with badly flawed software ,they wish to dump the Cable company on some poor jerk!

It is too bad that many people will have no choice of companies and will be stuck with this service!

To them I have but two words.
Say no!

Mark Heinemann

[weiser1968]

Cable is not broken

I'm not sure if you really know the entire story about TWC DVR. They have had continued up-dates of FIRM-WARE to there DVRS and the majority of them work very well. If you follow the proper use of a DVR than the issues that you had with it would of not occurred. I would take a guess that you never powered it down while you were not useing it. It takes almost all of it's updates while it is in the off position. This would of resolved your issues. In regards to TWC raising there rates every provider of VIDO/HSI/PHONE in this country has raised it's rates. I bet that your cost of fuel for your vehicle has surpassed what the CATV providers have done in the past year to year and a half. Before you scream make sure you have all of your facts straight. A very happy TWC CUSTOMER.

[as901]

Why did Time Warner allow America Online to buy them?

One question that comes to mind is why did a huge company like Time Warner allow a small company like America Online to buy them out?

It would be like letting a single hotdog stand purchase a huge meat company!

Seeing the choices that Time Warner and America Online has made over time ,I am shocked that they have not self destructed before now!

Time Warner started out as a fine media company. They made careful and proper choices. They grew ,and when they saw cable ,they used that to make them even bigger!

When America Online came along ,they began a steady line of insane and childish choices. They passed on shows that would have helped HBO.

They raised their rates at a time when Satalite was offering better service at lower prices. They dumped TiVo ,and they purchsed a line of DVRs with faulty software.

Why has the board not been replaced?

Mark Heinemann

[GHAKC]

Question for Mark's comment:

Are the past decision makers for these items still on the board or did they jump the ship before it sank?