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Citing things like falling ad revenue and declining subscriptions, Time Warner has confirmed plans to to spin off the AOL branch for good and let the company make its own decisions. The news comes as no real surprise given the history of the merger, which showed its first signs of trouble several years ago when Time Warner began the process of selling it off, at least internationally, to French communications giant Neuf Cegetel.
They also hinted at the possibility of a spin off several times in the past few months. It is clear to them that there's no chance of turning AOL around to make a profit, or at least no chance of them being willing to invest more into the troubled company. With little broadband infrastructure of their own, relying primarily on a few popular (yet unprofitable) online services, there’s little room for them to roam. Is the end of AOL near?
User Comments: 4
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I knew back then this would not work. Two totally different cultures. I guess they had to try it though, else they would always wonder what might have been.
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AOL made Microsoft look like a bunch of care bears hanging out on a rainbow.You lose customers when they finally get a better... or actual second choice.
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Time Warner was prey to the explosive but decadent business plan that AOL had at the time, let alone today.
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I too thought this was a marriage made in hell when if first happened. The weak link in the chain was AOL. The only question now that remains is what will be the future of the once mighty AOL. I'm afraid it's not going to be pretty or take very long.
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