what happened with TWC this spring? All I can see is that they paid out a lot of cash to shareholders when cash was a scarce commodity. What was the rationale for that and how did it affect the long term viability of TWC.
Also, any comments on AOL.
Thanks a heap;
ps. I admit being new to this stock and apoligise for not digging further but the legalize is just too much for any mortal.
The cash payout was part of the TWX separation, TWX still owned most of TWC and to complete the separation of the two TWC paid it in a dividend, thats the cash payout you see. Then they decided to cheat to get the stock back to $30.
AOL thoughts. For Time Warner, it was one of the biggest business blunders in history. Embarrassing. The CEO of TWX at the time still got paid nicely for the billions he lost for shareholders. Well done for him.
But AOL is not a business I would want to own, even if it was given to me for free.
Shareholders of TWX got a spin off of Time Warner Cable at a payout rate of: .08367 per share of TWX and then TWX did a reverse split so you don't have as many shares of it as you did but you do have additional shares of TWC that you didn't have.
First off 23 billion in debt is past the point of no return. Second, management is burning through cash faster than it comes in. The 36k sub increase is a corporate lie, since that is roughly the same number of seasonal hook ups for the northeast region. Then there were the layoffs a few months back that did not go far enough. Then there is the endless promos they keep running giving away service to keep up the fake sub numbers. Bottom line, look at long term revenue and growth and it all leads to a Charter/Adelphia situation. Management does not have a clue.