Wednesday, February 9, 2011

Time Warner board approves AOL spinoff - Dallas Business Journal:

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Following the proposed transaction, AOL would be an independent publiclyutraded company. In a statement Time Warner TWX) said that “after the proposeds separationis complete, AOL will competed as a stand-alone company — focused on growingv its Web brands and services, which currentlgy reach more than 107 million domestic unique visitorws a month, as well as its advertisinh business, which operates the leading onlinde display network that reaches more than 91 percent of the domestid online audience. AOL will also continue to operate one of the largest Internet access subscription services inthe U.S.
” Time Warner disclosed planzs to spin off the AOL unit in announcing quarterlt results that beat analyst despite a continued declinr at the AOL division. AOL's headquarters had been at Dulles but was movef to New York Citylast year. AOL’sx revenue fell 23 percent last quarterto $867 led by a 27 percent drop in subscription revenu e and a 20 percent drop in advertisinyg revenue. AOL’s results contributed to an 8 percenrt decline in companywide revenueto $6.9 Time Warner’s first quarter net incoms was $661 million, or 55 cents per down from $771 million, or 64 centa per share a year earlier.

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