Shareholders of Time Warner are being asked to approve a reverse stock split in advance of the early 2009 spin-off of Time Warner Cable into a separate company. The directors of Time Warner are concerned that post-split, the shares of Time Warner, which lately have traded as low as $7, could fall into penny stock territory and deter potential investors. A special shareholders meeting has been called for January 16, 2009 to vote on approving a reverse split of 1-for-2 or 1-for-3 as the board sees fit. There are currently 3.59 billion shares of Time Warner outstanding.
