The 1-for-3 reverse stock split reduced the total number of Time Warner’s issued and outstanding shares of common stock, as well as its treasury shares. As a result of the reduction in the number of shares of common stock, the price per share increased proportionately upon the completion of the reverse stock split.

The reverse stock split did not affect any stockholder’s percentage ownership interest in Time Warner, except to the extent that the reverse stock split resulted in any of our stockholders owning fractional shares, as discussed further below. Proportionate voting rights and other rights and preferences of Time Warner stockholders were not affected by the reverse stock split, except as a result of the payment of cash in lieu of fractional shares.