Processing .....please wait.. 
The article has been forwarded.... 
Time Warner to split AOL
By siliconindia
|
Wednesday, 13 August 2008, 19:30 IST
Time Warner said it would split AOL's dial-up Internet and advertising businesses into separate divisions by early 2009, a move that could make a sale or merger of either business easier.
Time Warner plans to focus on creating content rather than bolstering its distribution business by shedding the cable division by the end of the year and splitting the AOL business. It also reported a slightly higher-than-expected quarterly profit, quoting strong cable advertising sales and films.
Time Warner Chief Jeffrey Bewkes said in a statement, As we continue to reshape Time Warner, we'll increasingly focus on our goal to create and manage high-quality branded content.
Time Warner is also discussing deals with Yahoo! and Microsoft to merge or sell off its online advertising and Internet business.AOL revenue fell 16 percent, reflecting a 29 percent fall in subscription revenue in a quarter when it lost 604,000 subscribers. It ended the second quarter with 8.1 million U.S. subscribers.
The owner of CNN, Time and Warner Bros movie studios said that the second-quarter net income fell 26 percent to $792 million from $1.07 billion a year earlier, when it logged big gains including from the sale of its interest in Bookspan. Their profit was 24 cents per share excluding items that included $51 million in legal and professional fees and impairment charges from cable systems and Turner networks. Revenue rose five percent to $11.56 billion.
