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Time Warner Plans AOL Spin-Off
New CEO also considers selling Time Warner Cable
By Nick McMaster
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Posted Feb 6, 08 11:44 AM CST
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(Newser)
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In an effort to revive the company's slumping stock, Time Warner's new CEO plans to break up AOL, keeping its growing online ad properties, but unloading its increasingly obsolete dial-up Internet service provider. Operating income at AOL fell 70% in the fourth quarter, as the company continued to lose Internet-access customers, the Wall Street Journal reports.
CEO Jeff Bewkes also told investors today he will consider selling or spinning off fast-growing Time Warner Cable, and he sees room for cost cutting at the corporate level and at New Line Cinema. With today's announcements, Bewkes is aiming to give Wall Street the shakeup it has been asking for; the company's "miserable" stock performance, as one analyst put it to the Washington Post, baffles observers, given the value of Time Warner's entertainment properties.