Time Warner Takes Another Step Towards An AOL Spin-Off

The hiring of Tim Armstrong away from Google confirmed that Time Warner (TWX) intends to fully spin off AOL.

Here’s more evidence that all systems are go, even if the market is crappy. Time Warner is asking bondholders for an adjustment to bond covenants, which would basically move debt off of AOL and onto HBO. In addition to cleansing AOL’s balance sheet, it also removes various restrictions off of AOL’s books and the transfer of its assets.

Still no word on the manner of the spin, as in whether it’d be via an IPO or more along the lines of Time Warner Cable.

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