Time Warner Split Receives Final Approval


Time Warner Inc. cleared the final regulatory hurdle in its quest to split-off its Time Warner Cable unit, receiving a favorable tax ruling from the Internal Revenue Service on Thursday.
The IRS ruling, which came one day after the Federal Communications Commission signed off on the deal, was the last regulatory hurdle for the split off to clear. In a statement, Time Warner said the transactionis on track to be completed by the end of the first quarter.
"With today's favorable IRS ruling, we're pleased to report that all regulatory and other necessary governmental reviews of the pending separation of Time Warner and Time Warner Cable are concluded," both companies said in a joint statement. "Now we're working through the process to achieve the separation. That process is on track and expected to be completed by the end of the current quarter."
Time Warner proposed splitting off its 85% interest in the cable unit in May. http: As part of the separation, Time Warner Cable had agreed to pay Time Warner Inc. a one-time cash dividend of about $9.25 billion, or $10.27 per share.