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Time Warner could spin off AOL online division
Media giant Time Warner could be looking to spin off AOL, according to the Globe and Mail.
The fate of AOL, which has transformed from an internet access provider into an online sales engine, will be decided by the end of the year, Time Warner said.
"By the end of this year, we can make the call on AOL (on whether) we have found a business model or approach that can result in sustainable growth over time," said Time Warner chief executive Richard Parsons. "We're in the right area."
Rumours have also surfaced that Time Warner could launch a stock offering for AOL, which would provide the firm with funds to better compete against industry players Google, Yahoo and Microsoft.
Over the past few months AOL has made several acquisitions, including that of mobile Marketing firm Third Screen Media, but a stock offering would increase its clout.
Time Warner could also split its cable division from its AOL online division, although this is unlikely to happen for several years.
Meanwhile, AOL was given a boost by recent research conducted by security firm McAfee. The study showed that the AOL search engine returned safer results (in terms of sites containing spyware, etc) than competitors Google, Yahoo, MSN, and Ask.
Search Marketing news posted on 08 June 2007
