Time Warner may spin off AOL division

April 29, 2009 – 9:00 pm – No Comment

AOL and Time Warner merged about 8 years ago and ever since the merger has seemed like a bad fit and a failed attempt at a merger to make an entertainment giant. Today Time Warner disclosed plans to spin off AOL in an attempt to get rid of the sagging division.

If it does spin off AOL, it will likely buy back the five percent stake in AOL that Google purchased in 2006.

“Although the company’s board of directors has not made any decision, the company currently anticipates that it would initiate a process to spin off one or more parts of the businesses of AOL to Time Warner’s stockholders, in one or a series of transactions,” the company said in a regulatory filing.

“Based on the results of the company’s review, future market conditions or the availability of more favorable strategic opportunities that may arise before a transaction is completed, the company may decide to pursue an alternative other than a spin-off with respect to either or both of AOL’s businesses.”

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