Summary:

As expected, Time Warner (NYSE: TWX) (NYSE:TWX) confirmed that its board of directors has authorized the spinoff of AOL — making the intern…

As expected, Time Warner (NYSE: TWX) (NYSE:TWX) confirmed that its board of directors has authorized the spinoff of AOL — making the internet unit an independent, publicly traded company following the proposed transaction. And, as we reported would be the case, AOL will keep the online-access subscription service.

Time Warner hopes to conclude the spinoff, which requires an SEC review, by the end of the year. The company also expects to buy back Google’s 5 percent stake as part of completing this transaction but there is no confirmation that Google (NSDQ: GOOG) has agree to the terms or whether a agreed-upon valuation has taken place. The news sent Time Warner stock up slightly higher in pre-market trading.

Time Warner Chairman and CEO Jeff Bewkes said:

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