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Thursday, November 12, 2009

Time Warner Taking $200M Charge On AOL Spinoff

By Matt Egan

FOXBusiness

Media titan Time Warner (TWX) warned Thursday its AOL unit will take a $200 million restructuring charge related to its spin-off, which will mark the final chapter of the companies’ failed $106 billion tie-up.

In a Securities and Exchange Commission filing, the company said it expects most of the additional restructuring charges to be incurred from the date of the spin-off through the first half of next year. Time Warner, which is also the parent of CNN, TBS and Time magazine, said it still sees the spin-off occurring before the end of 2009.

Time Warner did not detail what specific restructuring activities are expected to be undertaken at AOL, which it merged with in 2000. Led by ex-Google (GOOG) exec Tim Armstrong, AOL includes MapQuest, social networking site Bebo and celebrity gossip brand TMZ.

Time Warner’s stock eased 0.9% in recent trading to $31.63. The company’s shares are up more than 67% from a year ago.

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