Time Warner intends to separate from AOL
After eight years, the U.S. entertainment conglomerate Time Warner is seeking to spin off its struggling Internet subsidiary, AOL. According to documents Time Warner filed with the U.S. Securities and Exchange Commission, the company is exploring the possibility of allowing AOL to operate independently in the future.
After eight years, the US entertainment group Time Warner is seeking to separate from its ailing Internet subsidiary AOL. According to documents submitted by Time Warner to the US Securities and Exchange Commission, the company is examining the possibility of allowing AOL to operate independently in the future. However, a final decision by the Group committees is still pending. Time Warner and AOL merged in 2001 at the height of the Internet boom on the world's stock exchanges.
Time Warner CEO Jeff Bewkes explained that the economic environment was problematic, particularly for AOL. Bewkes announced that the Group wanted to concentrate on its entertainment and publishing business. This includes the TV channels CNN and HBO, the film studio Warner Bros and the news magazine Time.
Prior to this, the US media group announced its quarterly results. Time Warner has slightly increased its profits in the first quarter despite low advertising and falling DVD sales. As the company announced on Wednesday, the surplus amounted to 555 million dollars, compared to 548 million a year ago.
However, the turnover of the group, which includes the news channel CNN, AOL Internet and the Hollywood studios Warner Bros, fell by 7 percent to 6.9 billion dollars. This is the first quarterly result since the spin-off of the Time Warner Cable division. The Group reaffirmed its forecast for the full year, according to which earnings per share will remain stable at 1.98 dollars.
Time Warner CEO Jeff Bewkes explained that the economic environment was problematic, particularly for AOL. Bewkes announced that the Group wanted to concentrate on its entertainment and publishing business. This includes the TV channels CNN and HBO, the film studio Warner Bros and the news magazine Time.
Prior to this, the US media group announced its quarterly results. Time Warner has slightly increased its profits in the first quarter despite low advertising and falling DVD sales. As the company announced on Wednesday, the surplus amounted to 555 million dollars, compared to 548 million a year ago.
However, the turnover of the group, which includes the news channel CNN, AOL Internet and the Hollywood studios Warner Bros, fell by 7 percent to 6.9 billion dollars. This is the first quarterly result since the spin-off of the Time Warner Cable division. The Group reaffirmed its forecast for the full year, according to which earnings per share will remain stable at 1.98 dollars.
