AOL Time Warner Mulls Cable IPO

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Just one day after posting a $54 billion loss in the first quarter, AOL Time
Warner Inc. is reportedly mulling an initial public offering for a minority
stake in its Time Warner Cable unit.

If a public stock offering does occur, the publicly traded unit would be
worth roughly $45 billion, according to The Wall Street Journal.

AT&T Corp. has been trying to shed its 25.5 percent stake in Time Warner
Entertainment for the past two years, but it has been unable to cut a deal with
TWE parent AOL Time Warner.

A public offering would enable AOL Time Warner to compensate AT&T for its
stake, the paper reported.

Citing people familiar with the matter, the report indicated that an IPO is
just one of several restructuring plans the media giant is considering.

AOL Time Warner could not be reached for comment.

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