Time Warner’s board of directors determined that the separation is the right step for Time Warner and Time Inc. Time Warner’s board of directors considered the following potential benefits in deciding to pursue the separation transaction:

• Time Warner and Time Inc. will each have a more focused business and be better able to dedicate financial resources to pursue appropriate growth opportunities and execute strategic plans best suited to its respective business.
• Management of each of Time Warner and Time Inc. will be able to devote its time and attention to the development and implementation of corporate strategies and policies that are based primarily on the specific business characteristics of their respective companies.
• The separation will provide investors with greater choice in deciding whether to own shares of Time Warner or Time Inc. or both companies based on their separate portfolios of businesses and assets.