Time Warner confirms AOL spin off
Time Warner and AOL have confirmed the timing and details regarding the spin-off of AOL from Time Warner. The Time Warner board has approved the final distribution ratio and declared a pro rata dividend of the shares of AOL common stock owned by Time Warner that will result in the complete legal and structural separation of the two companies.
On the distribution date of December 9th 2009, Time Warner stockholders will receive one share of AOL for every eleven shares of Time Warner common stock they hold. The AOL spin-off has been structured to qualify as a tax-free dividend to Time Warner stockholders for US federal income tax purposes.