Because bigger isn’t necessarily better:
May 21 (Bloomberg) — Time Warner Inc., pressured by investors to break up a media conglomerate built over three decades, will spin off its cable-television unit and receive a $9.25 billion one-time cash dividend in the transaction.
Chief Executive Officer Jeffrey Bewkes said the separation gives Time Warner funds to make purchases, return cash to shareholders, or invest in remaining film, TV, Internet and publishing businesses. Time Warner Cable plans to borrow $10.9 billion to fund the entire payout, equal to $10.27 a share.