Time Warner to Spin Off AOL
In a regulatory filing this morning, Time Warner signaled its intention to spin off its struggling AOL unit.
The New York company told investors that it anticipates "that it would initiate a process to spin off one or more parts of the businesses of AOL to Time Warner’s stockholders, in one or a series of transactions."
AOL has undergone a series of wrenching changes, most recently with a change of leadership. Time Warner brought in ex-Google ad executive Tim Armstrong to be CEO.
Time Warner made the spin-off disclosure on the same day it reported that its first quarter profit fell 14 percent. Ad revenue at AOL fell 20 percent, Time Warner said.
-- Michael Rosenwald
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