Is Time Warner Set To Spin Off AOL?
April 30, 2009 at 5:24 AM (PT)
TIME WARNER is still paying a price for its failed merger with AMERICA ONLINE in 2000, reports THE NEW YORK POST, which writes "as the hobbled online unit, along with weakness in publishing, sapped the strength of the company's film division and cable networks. But, in a move sure to delight TIME WARNER's long-suffering investors -- who lost more than $100 billion as a result of the AOL deal -- that sad story may soon come to an end.
"In its 10-K filing, TIME WARNER said that 'the company currently anticipates that it would initiate a process to spin off one or more parts of the businesses of AOL to TIME WARNER's stockholders, in one or a series of transactions.'
"AOL, where both subscription and advertising revenue fell more than 20% in the first quarter, is split into two units: dial-up access and content, which includes the Platform A advertising business and properties like TMZ.com that are part of MEDIAGLOW. TIME WARNER could spin out one of those units, most likely access, and keep the other, or spin off both."