Media conglomerate Time Warner and Time Warner Cable say their boards have approved the companies' legal separation, with Time Warner Cable expected to pay a hefty $10.9 billion one-time dividend to shareholders.

New York-based parent Time Warner Inc. will receive $9.25 billion of the dividend payout.

"Separating the two companies will help their management teams focus on realizing the full potential of the respective businesses and will provide investors with greater choice in how they own this portfolio of assets," said Time Warner President and Chief Executive Jeff Bewkes.