AOL may want Time Warner to drop "AOL" name

SpinnerSpinner Birmingham, UK
edited August 2003 in Science & Tech
The ISP (Internet Service Provider) America Online is asking AOL Time Warner to drop "AOL" from its name because of publicity concerns.

The problem surronds the Securities and Exchange Commissions investigations into numerous accounting issues with AOL Time Warner, American Online's parent company.
Jonathan Miller, the chief executive of America Online, has raised the issue with AOL Time Warner CEO Richard Parsons, according to a person with knowledge of the matter who spoke on condition of anonymity.

Mia Carbonell, a spokeswoman for AOL Time Warner, declined to comment on the story, which was first reported by The Wall Street Journal on its Web site.

The talks remain in early stages, the source said. Any name change would have to be approved by the company's board.

AOL Time Warner's name has been tarnished as the Securities and Exchange Commission investigates numerous accounting issues at the company, mainly at the AOL division. The company has also been hit with numerous shareholder lawsuits that accuse AOL Time Warner of misleading investors.

Miller's rationale for seeking the change is that he is concerned that negative publicity regarding the parent company is often associated with the America Online division, the source said, particularly since the full name of AOL Time Warner is often abbreviated to "AOL" in news stories.

America Online has been struggling to turn itself around as dial-up subscribers continue to abandon the service for faster ways to connect to the Internet. Revenues and earnings at AOL are falling, and subscriber losses have increased faster than many analysts were expecting.

If the AOL name is dropped, it would represent the latest retreat from the lofty goals of the deal announced in January 2000 under which AOL agreed to purchase Time Warner.

Since then, several senior managers from the AOL side of the company have left or lost power, and veterans from Time Warner including Parsons are firmly in control. The company has also abandoned promises of rapid growth and "convergence" among different corporate divisions.

The full report:
http://www.salon.com/tech/wire/2003/08/11/aol/index.html

More related info:
http://news.com.com/2100-1025_3-5062205.html?tag=fd_top

Comments

  • TheSmJTheSmJ
    edited August 2003
    Haha.. AOL is finally sucking it. I've been waiting for this since I was in 5th grade.

    About time.
  • ThraxThrax 🐌 Austin, TX Icrontian
    edited August 2003
    Haha. Yes.

    I've been waiting for AOL to die for years.
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