The Work

May 21, 2008 1:34 PM

Cravath, Paul Weiss, and Skadden on $9.25 Billion Time Warner Cable Spin-Off

Posted by Brian Baxter


Time Warner Inc. is getting out of the cable business. The world's largest media conglomerate announced today that it plans to divest itself of New York-based subsidiary Time Warner Cable Inc. in a $9.25 billion deal. The media conglomerate wants to focus more on its television network, film, and publishing operations.

Representing Time Warner, which is headquartered in the brand-new Time Warner Center in New York (above), is the company's longtime outside counsel at Cravath, Swaine & Moore. Corporate partners Richard Hall, Stephen Burns, and Eric Schiele, finance partner Timothy Massad, tax department chair Stephen Gordon, tax partner Lauren Angelilli, employee benefits partner Eric Hilfers, and associates Lori Diamond Goodman, David Fishman, Jonathan Katz, Wendy Ng, Sarah Rosen, Rezart Spahia, Christof Strasser, and J. Leonard Teti II comprised the Cravath deal team. (The New York firm has advised Time Warner on large transactional work in the past, including the 1989 merger between Time Inc. and Warner Communications, and AOL's $124 billion takeover of the company in 2001.)

Paul, Weiss, Rifkind, Wharton & Garrison, which also has a longstanding relationship with the media giant, is advising Time Warner Cable, the second-largest U.S. cable company, behind Philadelphia-based Comcast Corporation. Robert Schumer, cohead of the firm's M&A group, M&A partner Ariel Deckelbaum, and employee benefits chair Robert Fleder are advising Time Warner Cable. Paul Weiss chairman Alfred Youngwood and Jeffrey Samuels, cochair of the firm's tax department, are serving as tax counsel.

Roger Aaron, senior partner-in-charge of the corporate practice at Skadden, Arps, Slate, Meagher & Flom, is advising a special committee of Time Warner Cable's board of directors along with M&A partner Stephen Arcano and tax partner Dean Shulman.

With the cable business divestiture behind it, Time Warner's next order of business could be determining the fate of its AOL LLC unit. The division's ad sales have failed to replace decreasing returns on Internet access, long leading to speculation that it would be sold off.

Who said 2008 would be a down year for deal work?

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