posted on May, 22 2005 @ 09:43 AM
America Online purchased Time Warner in 2001 for $112 billion. A dramatic reversal in the value of tech stocks in the following year led to a $98.7
billion loss for AOL - Time Warner. Other problems since then have further devalued AOL stock in the eyes of investors. It now apppears that the
situation has come to the point where Time Warner is considering selling the underperforming division.
NEW YORK -- Time Warner Inc. may consider spinning off its America Online division in the future to help finance acquisitions, chief executive
Richard D. Parsons said.
Time Warner has discussed with management of Dulles-based AOL the possibility of selling shares of the unit in an initial public offering and decided
not to go ahead with such a plan "at this point," Parsons, 57, told investors today at the company's annual meeting in New York.
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It's interesting how things can change in just a few years. It looks like many of the excesses of the tech stock boom are being reversed one by one.
As more and more Americans find cheaper (and better) alternatives to AOL for their ISP, the value of the division continues to drag down the rest of