Time Warner separates from AOL
Time Warner, the world's largest media group, wants to definitively separate from its Internet subsidiary AOL. AOL is to become an independent listed company by the end of the year.
Time Warner, the world's largest media group, wants to definitively separate from its Internet subsidiary AOL. AOL is to become an independent listed company by the end of the year. "The separation is another important step in the reorganization of Time Warner," said Time Warner CEO Jeff Bewkes on Thursday, according to SDA. Time Warner will then be in a better position to focus on its core media content businesses.
AOL has been dead weight for the media giant for years in view of the downturn in the Internet business and the bleak outlook for online advertising. At the end of April, Time Warner officially announced that it was examining a spin-off of AOL. Time Warner and AOL merged in 2001 at the height of the Internet boom. AOL was valued at 165 billion dollars at the time; the deal proved disastrous for Time Warner. AOL made losses, Time Warner had to write off large amounts.
Prior to the separation, Time Warner will increase its stake in the internet service provider from 95 to 100 percent. The remaining 5 percent is still owned by search engine giant Google. Time Warner will acquire these in the third quarter of 2009.
AOL has been dead weight for the media giant for years in view of the downturn in the Internet business and the bleak outlook for online advertising. At the end of April, Time Warner officially announced that it was examining a spin-off of AOL. Time Warner and AOL merged in 2001 at the height of the Internet boom. AOL was valued at 165 billion dollars at the time; the deal proved disastrous for Time Warner. AOL made losses, Time Warner had to write off large amounts.
Prior to the separation, Time Warner will increase its stake in the internet service provider from 95 to 100 percent. The remaining 5 percent is still owned by search engine giant Google. Time Warner will acquire these in the third quarter of 2009.
