Tuesday, 22 August 2017

Friday Review: The End of the Affair

By Mary Lennighan, Total Telecom
Friday 29 May 09

Time Warner and AOL admit their irreconcilable differences, but elsewhere in the industry things are heating up.

Although it lasted the best part of a decade, the AOL-Time Warner affair was just that; it did not evolve into the stable marriage the pair had clearly hoped for. Talk of separation has been rife for some time and earlier this year the company appointed Google advertising executive Tim Armstrong as AOL CEO with the remit of leading a possible spin-off. Confirmation came earlier this week. The spin-off will see Time Warner buy back Google's 5% stake in AOL and then offer AOL's shares to its own shareholders. The details are still sketchy, but the manoeuvre is expected to take place by the end of this year, almost 10 years since companies announced their merger. It was 10 January 2000, the height of the dot.com boom, when AOL and Time Warner unveiled their plan to create a media giant with combined assets worth $350 billion…

Although it lasted the best part of a decade, the AOL-Time Warner affair was just that; it did not evolve into the stable marriage the pair had clearly hoped for. Talk of separation has been rife for some time and earlier this year the company appointed Google advertising executive Tim Armstrong as AOL CEO with the remit of leading a possible spin-off. Confirmation came earlier this week. The spin-off will see Time Warner buy back Google's 5% stake in AOL and then offer AOL's shares to its own shareholders. The details are still sketchy, but the manoeuvre is expected to take place by the end of this year, almost 10 years since companies announced their merger. It was 10 January 2000, the height of the dot.com boom, when AOL and Time Warner unveiled their plan to create a media giant with combined assets worth $350 billion…

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