Common stock holders will get one share of AOL for every 11 of their existing Time Warner shares.
Time Warner Inc. and AOL Inc. on Monday announced the timing and details of their separation, saying AOL and its 7,000 employees will spin off from Time Warner on Dec. 9.
The companies announced their divorce in May, after a decade of cohabitation that never quite made sense.
In hopes of creating a multi-media empire, Time Warner bought AOL in January 2001 for $164 billion. But its stock price plunged and synergies were hard to come by as AOL transformed from a self-contained online community into just another Web portal struggling to find revenue.
When AOL and its 7,000 employees are spun off as a separate company Dec. 9, stockholders as of Nov. 27 will receive one share of AOL common stock for every 11 shares of Time Warner common stock they hold.
Prior to that date, a letter detailing AOL’s business and management following the split will be sent to Time Warner stockholders, the company said.
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Here’s the full press release: