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Time Warner may drop AOL

Unknown
edited March 2004 in Science & Tech
Time Warner is looking at different options for America Online, including the possible sale, spin-off or reorganization of the Internet service provider, according to a published report.

[blockquote]A sale or spin off would essentially undo the 2001 purchase by America Online of media conglomerate Time Warner, whose units include cable television operations, movie studios, television and cable networks as well as magazines. Despite a 39 percent rise in the stock price over the last 12 months, the combined company is still worth two-thirds less than on the day the merger was completed. The name AOL was stripped out of the corporate name last year. CNN/Money is also a unit of Time Warner.
[/blockquote]
[link=http://money.cnn.com/2004/03/17/technology/aol_spinoff/index.htm?cnn=yes]The full report[/link]

Comments

  • JengoJengo Pasco, WA | USA
    edited March 2004
    wow not even time warner wants aol anymore

    lol thats sad
  • ginipigginipig OH, NOES
    edited March 2004
    A little late in the game, isn't it?
  • Straight_ManStraight_Man Geeky, in my own way Naples, FL Icrontian
    edited March 2004
    Actually, if AOL spins off, expect them to do mostly BYOB and Braodband connects, and phase out dialup entirely. Folks on dialup do not like the rates they charge per hour, it is cheaper to BYOB and pay AOL about $15.00 per month for the exclusive parts of their services. I know some national airline pilots who have done just that-- the airline uses AOL for secure email and they have to access that and the secure scheduling areas which ONLY connect through AOL. One person I know was racking up $80.00 to $90.00 a month in overuse bills from base AOL dialup, he moved to braodband her and at home and SAVED $40.00-$50.00 per month.

    That kind of thing is why AOL's profits are so low for investors, and why a spinoff is likely. AOL needs still to bail out of some older long-term comm bandwidth contracts that are eating deep into its bottom line. Paying the contract penalties to do so will hurt profits a whole bunch, and I think Time Warner does not want that exposure.

    John D.
  • KingFishKingFish
    edited March 2004
    They must have finally finished plastering all the exec offices in Atlanta with those cd's. Remodeling is done, the lead weight of a company has got to go now.

    KingFish
  • JustinJustin Atlanta
    edited March 2004
    MAybe we could get them to spin AOL into a MAssive Folding Farm? Whacha think?
  • kanezfankanezfan sunny south florida Icrontian
    edited March 2004
    now there's a rumor MS might be thinking about buying AOL. if you can't beat em, buy em.
  • EyesOnlyEyesOnly Sweden New
    edited March 2004
    kanezfan wrote:
    now there's a rumor MS might be thinking about buying AOL. if you can't beat em, buy em.

    :hrm: :shakehead :eek3::p

    Oh noes. I liked justins idea more. :fold:
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