Time Warner Cable, the second-largest cable operator in the US, is separating from its parent, Time Warner. Time Warner, a media and entertainment company maintains businesses involved in films, television and publishing. It develops and operates the AOL network, and provides online advertising services on both the AOL Network and third-party Internet sites. The New York based company, also has a strategic alliance with Google.

The soon-to-be spun off subsidiary, Time Warner Cable, offers video, high-speed data and voice services over its broadband cable systems to both residential and commercial customers. It provides set-top boxes equipped with digital video recorders and high-definition television programming, which should both be in high demand as the US goes all digital in June.

The cable company is located in key points on both coasts, in the south and mid US. Areas of service are in the states of New York, southern California, northern and southern Carolina, Texas, and Ohio. At the end of 2008, the cable company had approximately 15 million subscribers. Time Warner Cable claims to be “leading the way in the digital revolution with new ideas that are going to change entertainment and revolutionize the way we communicate.

Time Warner announced: "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.”

The separation will be accomplished through a spin-off distribution that involves a pro-rata dividend of all the Time Warner Cable common stock held by Time Warner to Time Warner stockholders. Anticipated time for completion of the separation is at the end of the first quarter.

Time Warner which competes with Comcast, Dell, and Sprint Nextel closed at $7.58. Time Warner Cable, who competes with Dish Network, Viacom, and Yahoo closed at $17.59.  X