Time Warner says farewell to AOL

By Justin Mann on April 29, 2009, 1:19 PM
Nearly a decade after first announcing plans to join forces in a $164 billion deal, Time Warnerís relationship with AOL is soon coming to a close. The two giants officially merged in 2001 with the idea that AOLís strengths as a new media company along with its massive customer base could benefit an old media company like Time Warner, and vice versa. Things didnít quite work out as planned, however.

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, thereís little room for them to roam. Is the end of AOL near?




User Comments: 4

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fastvince said:
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.
tengeta said:
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.
Julio said:
Time Warner was prey to the explosive but decadent business plan that AOL had at the time, let alone today.
DarkCobra said:
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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