Time Warner and Time Warner Cable today announced that their respective boards of directors have approved an agreement that will result in the complete legal and structural separation of the two companies.

As part of the transaction, Time Warner will exchange its 12.4% interest in TW NY Cable for 80 million newly issued shares of Time Warner Cable’s Class A common stock, increasing Time Warner’s ownership stake in Time Warner Cable’s common stock from 84% to 85.2%. Time Warner will also receive $9.25 billion in one-time dividend payouts.