Google Executive Takes Over AOL
March 13, 2009 at 6:42 AM (PT)
AOL is getting new leadership again, just two years after the outgoing executives were chosen to turn around the struggling dial-up and content company, reports THE WASHINGTON POST. GOOGLE SVP TIM ARMSTRONG will take over as Chairman/CEO, replacing RANDY FALCO, said TIME WARNER, AOL's parent company. AOL Pres./COO RON GRANT will leave with FALCO after a transitional period of a few weeks.
"TIM is the right executive to move AOL into the next phase of its evolution," TIME WARNER CEO JEFFREY BEWKES said in a statement. "At GOOGLE, ARMSTRONG helped build one of the most successful media teams in the history of the Internet -- helping to make GOOGLE the most popular online search advertising platform in the world for direct and brand marketers."
AOL has blamed falling ad revenue for its declining fortunes; its annual revenue fell 20% in 2008, to $4.2 billion. FALCO's ouster comes as the company is in the midst of a round of layoffs in which it expects to shed about 10% of its workforce, or 700 workers. FALCO announced the layoffs in a memo distributed to AOL employees in JANUARY.