facebook
twitter
rss
account
search
search
 

Time Warner to spin off AOL

May 28, 2009 at 2:24 PM   |   Comments

NEW YORK, May 28 (UPI) -- U.S. telecommunications giant Time Warner Inc. said Thursday it would spin off AOL to provide the company with flexibility and improve its core businesses.

The anticipated separation "will be the best outcome for both Time Warner and AOL," Time Warner's Chairman and Chief Executive Officer Jeff Bewkes said in a statement.

AOL Chairman and CEO Tim Armstrong called the move "a great opportunity for AOL, our employees and our partners."

Time Warner owns 95 percent of AOL; Google owns 5 percent.

AOL, with 107 million unique Web visitors each month, has struggled, as advertising revenues declined last year.

Armstrong conceded, "we have a tremendous amount of work to do."

The proposed spin off would be structured as a tax-free transaction for Time Warner stockholders, Time Warner said.

© 2009 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
Most Popular
1
IS oil smugglers will feel wrath, Kurdish leader says IS oil smugglers will feel wrath, Kurdish leader says
2
Outrage over FERC decision on LNG exports Outrage over FERC decision on LNG exports
3
Exxon says it's safe from Russian sanctions Exxon says it's safe from Russian sanctions
4
Thales to research next-gen active radar antenna Thales to research next-gen active radar antenna
5
Statoil, Shell to assess Algerian shale Statoil, Shell to assess Algerian shale
Trending News
x
Feedback