Time Warner Ready to Dump AOL: To Sink or Swim on its Own

May 28, 2009

(ChattahBox)–“They say marriages are made in Heaven. But so is thunder and lightning,” said actor Clint Eastwood when describing his problem marriages and his sentiment also perfectly describes the shaky nine year union between Time Warner and AOL.

The ill-fated alliance between the staid media giant, Time Warner and the younger AOL deal makers, is about to come to an amicable end as Time Warner announced today it intends to spin-off, post haste, AOL’s advertising based dial-up unit.

Time Warner owns 95 percent of AOL, with Google holding the remainder. The announced plan is for Time Warner to buy Google’s stake and spin-off the advertising dial-up unit as a stand alone and publicly traded company.

New CEO Tim Armstrong, who arrived from Google to take over the helm of the struggling AOL, who is tapped to also head up the dial-up business, may later decide to further unload the dial-up unit from AOL’s portfolio.

The spin off of AOL will provide a “…better opportunity to achieve its full potential as a leading independent Internet company,” said Time Warner CEO Jeffrey Bewkes.

As AOL’s dial-up business has tanked in recent years, a revolving door of executives tried to turn the company around. AOL reduced its workforce by 10 percent this year and moved its headquarters from Dulles to New York.

Top executive Randy Falco was replaced in March by Tim Armstrong, a move that has energized AOL staffers, hoping that Armstrong can accomplish a turn around of the struggling company.

Source


Comments

2 Responses to “Time Warner Ready to Dump AOL: To Sink or Swim on its Own”

  1. Old Man Dotes on May 28th, 2009 1:58 pm

    The walled garden concept no longer works; people want *full* Internet access, without losing 25% of their screen real estate to annoying advertising.

    Dial-up is for people who aren’t within line-of-sight of a satellite. Does anyone live in Carlsbad Caverns?

    AOL is dead. Frankly, I’d like to see TWC and Roadrunner go to the same graveyard; they deserve it.

  2. Big_Country on May 28th, 2009 4:13 pm

    AOL, EarthLink, and NetZero should join forces and strive for world domination. The could hold the world hostage for . . . one million dollars . . . bru ha ha ha ha ha ha!

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