Analyst: Martin Exit Good For Time Warner

Could Lead to February Approval of Cable Split

By Mike Farrell -- Multichannel News, 1/15/2009 12:49:00 PM

Federal Communications Chairman Kevin Martin’s decision to step down from the agency on Jan. 20 could be a good sign for Time Warner Inc., which has been waiting for months for the agency to sign off on the proposed split-off of its cable operations.

Time Warner said in May that it planned to sever ties with Time Warner Cable, a move that was first expected to close by the end of the fourth quarter last year. But according to a report by Pali Research analyst Richard Greenfield, Martin refused to allow the FCC to vote on the matter. According to Greenfield, some investors worried that if Martin decided to stay with the agency in any capacity, it could jeopardize the company’s new target date for the split—March 31.

“With Kevin Martin’s leaving later this month, we expect a three-person FCC to clear the transaction in February 2009, with a closing of the split in March, including TWC’s payment of a $10.27/share dividend,” Greenfield wrote.

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