BUSINESS: Time Warner Considers AOL Sale, page 1

posted on May, 22 2005 @ 09:43 AM

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America Online purchased Time Warner in 2001 for $112 billion. A dramatic reversal in the value of tech stocks in the following year led to a $98.7 billion loss for AOL - Time Warner. Other problems since then have further devalued AOL stock in the eyes of investors. It now apppears that the situation has come to the point where Time Warner is considering selling the underperforming division.

www.washingtonpost.com
NEW YORK -- Time Warner Inc. may consider spinning off its America Online division in the future to help finance acquisitions, chief executive Richard D. Parsons said.

Time Warner has discussed with management of Dulles-based AOL the possibility of selling shares of the unit in an initial public offering and decided not to go ahead with such a plan "at this point," Parsons, 57, told investors today at the company's annual meeting in New York.

Please visit the link provided for the complete story.

It's interesting how things can change in just a few years. It looks like many of the excesses of the tech stock boom are being reversed one by one. As more and more Americans find cheaper (and better) alternatives to AOL for their ISP, the value of the division continues to drag down the rest of the company.

soficrow

posted on May, 22 2005 @ 11:32 AM

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Very interesting. FYI - I am unable to vote on this submission.

Terapin

posted on May, 22 2005 @ 05:43 PM

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AOL Is horrible and in serious trouble. They have totaly failed to respond to member concerns and are losing members at a rapid pace. Time Warner would do well to dump AOHell ASAP.