Time Warner To Spin Off AOL As Separate Company
May 28, 2009 at 7:00 AM (PT)
TIME WARNER has announced its plans to spin off AOL into an independent Internet company, with the separation to come before the end of the year. Recently-hired TIM ARMSTRONG will head up the separated AOL operation. The company will structure the deal as tax free for shareholders and TIME WARNER will buy out GOOGLE's 5% stake in AOL later this year so that TW shareholders will own 100% of the AOL company.
CEO JEFF BEWKES issued a statement TODAY saying, "We believe that a separation will be the best outcome for both TIME WARNER and AOL." AOL and TIME WARNER merged in 2001.