Time Warner Inc. is looking at different options for America Online, including the possible sale, spin-off or reorganization of the Internet service provider, according to a published report.
The New York Post said the company's investment bankers at Goldman Sachs are putting together a proposal for the online unit to be considered at its April meeting. It said AOL chief Jonathan Miller is to present an update on AOL's business at that meeting.
A sale or spin off would essentially undo the 2001 purchase by America Online of media conglomerate Time Warner, whose units include cable television operations, movie studios, television and cable networks as well as magazines. Despite a 39 percent rise in the stock price over the last 12 months, the combined company is still worth two-thirds less than on the day the merger was completed. The name AOL was stripped out of the corporate name last year. CNN/Money is also a unit of Time Warner.
News source: CNN
1 Comment - Add comment