CNBC's David Faber reported yesterday about the potential break-up of Time Warner Inc. (NYSE: TWX) and had some interesting detail about just how it might play out.
Honestly break up is really the most sensible path for Time Warner since Wall Street is clearly not embracing the media conglomerate model right now. TWX could make a case that its diversification provides safety if the economy softens further, but investors aren't buying it. So far today, the stock is at $17.80, losing another 1%.
Here are a few points from Faber's report:
Time Warner Cable Inc. (NYSE: TWC): Now a portion of Time Warner's stake trades separately. But the mother ship could spin off 85% of the unit and offer TWX shareholders an opportunity to exchange some of their shares for Time Warner Cable shares.
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