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TWX Takes Another Step Toward AOL Spin-off

|Includes: CHTR, Time Warner Inc. (TWX)

The WSJ is <a href="">reporting</a> that TWX has asked bondholders for consent to amend covenants.  The amendments essentially switch collateral on the bonds from AOL to HBO.  The idea is to set up AOL for a spin-off as a debt-free company.  I've written often on TWX noting that any divestiture of AOL will be positive for TWX shares as it will remove a no growth asset, free up management time, and increase the importance of well positioned cable networks and film and TV studio.  TWX popped nicely last week post the spin of TWC.  I think more upside lies ahead as long as cable networks ad growth gets no worse than flat to down low single digits.  Here is everything I have written on TWX over the years: