Time Warner parted with AOL roots

    Jeffrey L. Bewkes, who has been Executive Director of Time Warner Media Corporation for more than a month, announced last week that the company wants to part with the business of its Time Warner Cable affiliate cable division and separate the provider services provided by by AOL, from its web component. Many experts regard the latter as a step towards leaving the market, where AOL earned $ 164 billion in the 90s, for which in 2000 it actually bought a much larger Time Warner, before losing a record $ 99 billion from for the collapse of the dotcoms .

    AOL Internet Service Provider, a company with nearly 30 years of history, remains a highly profitable business today. However the resultslast fiscal year clearly showed that this state of affairs will not last long. AOL's net profit decreased by a third, and the number of subscribers, at its maximum reaching 30 million, decreased by 740,000 thousand in the fourth quarter of 2007 alone. At the same time, the company’s management more than once announced its ambitious plans to compete with market leaders online advertising.

    Time Warner Cable, in turn, after separation from its "big brother" get used to greater freedom in decision-making, which was previously limited to its role of "non-core asset" in a large corporation.

    Bucks' statement immediately led to the desired effect: Time Warner shares grew slightly, and investors, who had long expressed dissatisfaction with the stagnation in the company's development, slightly weakened the knots of ties.

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