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Time-Warner Planning AOL Split

Posted by Zonk on from the seems-like-every-year dept.

Two years ago the word was AOL was planning a split from Time-Warner, because it was so successful. Now Time-Warner is considering a split of its own, deciding whether or not to separate the two 'halves' of the AOL pie. The split would see its 'access' ISP side made into an entity separate from its 'audience' side, consisting of portals, advertising and blogs. "[Time-Warner chief executive Jeffrey Bewkes] also said [AOL's] 84 percent ownership stake in Time Warner Cable is 'less than optimal' for both companies. He said the two companies are talking about operating improvements and changes to the ownership structure. The chief financial officer, John Martin, said it will take 'several more months' to separate the AOL businesses 'because it's fairly complicated.' The company expects AOL's advertising revenue for the first quarter of 2008 to be 'essentially flat to down slightly' versus the year-earlier quarter, he said."

18 of 69 comments (clear)

  1. funny by nomadic · · Score: 4, Insightful

    Back when AOL and Time Warner merged, everyone except techies said they didn't understand, Time Warner was a fading dinosaur while AOL was a superstar. The techies said they didn't understand, AOL was a company heading inevitably towards failure--they just didn't have anything that anyone really needed to pay for.

    1. Re:funny by steelfood · · Score: 2, Interesting

      I once heard it being described as an old billionaire nabbing a young hot trophy wife, forgetting that the wife gets half the estate when there's a divorce, and gets progressively less hot as the years go on.

      The only difference is that the billionaire will probably naturally die before the hot wife turns into an old hag, but a corporation will remain alive as long as it can.

      --
      "If a nation expects to be ignorant and free in a state of civilization, it expects what never was and never will be."
    2. Re:funny by dk90406 · · Score: 2, Interesting

      I think this is a indicator of what will happen if Microsoft (Time Warner)buys Yahoo (AOL). I see now way Microsoft can gain anything from that deal.

    3. Re:funny by Dionysus · · Score: 2, Insightful

      AOL was a company heading inevitably towards failure--they just didn't have anything that anyone really needed to pay for.

      Really? Because when I read /. from that period (like here and here), it's all about doom-and-gloom, and AOL-TimeWarner will take over the internet and stop people from access any content without being an AOL subscriber.
      --
      Je ne parle pas francais.
    4. Re:funny by BewireNomali · · Score: 4, Insightful

      branding and user base.

      google had google video. youtube was crushing google video. google did not have a strong presence in video online and realized that internet inertia had hit - youtube was to video what google was to search. by buying youtube - they bought the branding and presence - a presence that is now lucrative because of the content deals, etc.

      microsoft is not analogous to time warner. yahoo is not analogous to aol. yahoo has a strong web presence - this is undeniable. microsoft does not and cannot build a strong web presence (MSN gets good numbers but those are cheat numbers because of explorer defaults that most don't change) because it moves too slowly and it doesn't understand how to build a web BRAND. Unfortunately for Microsoft - recent evidence shows that younger execs - younger companies - have a better sense of building brands online. microsoft cannot do this - yahoo is not the answer. but this deal is not analogous to the AOL deal. At the time, it seemed sensible that the internet's premier portal get exclusive access to a huge library of content. Of course in retrospect it seems more sensible to strike deals with content companies so as to not cross-corrupt disparate corporate cultures - and i'm certain somewhere there are rules about the critical mass size of companies before they collapse under their own weight.

      building a presence on the web requires core strength. google has search. not sure what yahoo's is, but they have stickiness. microsoft has NO online core strength. NONE. And it's 2008. their search is mediocre in most respects compared to google. they develop also/ran products long after internet phenomenons emerge - despite having the money to chase trends so aggressive so as to appear innovative even if they are not. Their online products do not differentiate on the basis of quality and/or branding. Finally, their inexorable ties to backward compatability - be it to old formats and or dying business models - it's like trying to sprint with a ball and chain. They have a problem.

      they need to spin off a lightning quick young group - get the brightest young maverick engineers and call it microlabs or something. Let them build some crazy shit and see what pops up. this strategy here is for the fucking birds and IMO a waste of 40+ billion.

      --
      un burrito me trampeó.
    5. Re:funny by hansonc · · Score: 2, Informative

      How short people's memories are.

      AOL bought Time Warner. The company name became AOL-Time Warner. Eventually the AOL portion was dropped but it doesn't change the fact that AOL bought Time Warner, not the other way around.

    6. Re:funny by Attila+Dimedici · · Score: 2, Informative

      The problem is that AOL (Yahoo) bought Time Warner (Microsoft), so that your thought that there is equivalence here is incorrect.

      --
      The truth is that all men having power ought to be mistrusted. James Madison
  2. You've got .... by bizitch · · Score: 5, Funny

    ...layoffs

    --
    ---- "Logoff! That cookie shit makes me nervous!" - A. Soprano
  3. I'm worried by 4D6963 · · Score: 5, Funny

    Is it that AOL is doing bad? Because I haven't received any CDs from them in a while, so I'm getting worried..

    --
    You just got troll'd!
    1. Re:I'm worried by SoupGuru · · Score: 4, Funny

      me too.

      --
      What doesn't kill you only delays the inevitable
    2. Re:I'm worried by Chabil+Ha' · · Score: 2, Funny

      Oh, the good ol' days of AOL dial-up:

      One sunny day, arrived in the mail,
      500 free hours from AOL!
      Twas looking for fun
      But then for my gun
      When the line busy and thus it failed.

      --
      We're all hypocrites. We all have hidden parts, it's the contrast between them that make us more a hypocrite than others
    3. Re:I'm worried by morgan_greywolf · · Score: 2, Funny

      Time-Warner Planning AOL Split
      Posted by Zonk on Wednesday February 06, @01:09PM
      from the seems-like-every-year dept.
      Businesses America Online The Internet
      Two years ago the word was AOL was planning a split from Time-Warner, because it was so successful. Now Time-Warner is considering a split of its own, deciding whether or not to separate the two 'halves' of the AOL pie [CC]. The split would see its 'access' ISP side made into an entity separate from its 'audience' side, consisting of portals, advertising and blogs. "[Time-Warner chief executive Jeffrey Bewkes] also said [AOL's] 84 percent ownership stake in Time Warner Cable is 'less than optimal' for both companies. He said the two companies are talking about operating improvements and changes to the ownership structure. The chief financial officer, John Martin, said it will take 'several more months' to separate the AOL businesses 'because it's fairly complicated.' The company expects AOL's advertising revenue for the first quarter of 2008 to be 'essentially flat to down slightly' versus the year-earlier quarter, he said."

      I'm woried (Score:5, Funny)
      by 4D6963 (933028) Alter Relationship on Wednesday February 06, @01:27PM (#22323440) Homepage Journal

      Is it that AOL is doing bad? Because I haven't received any CDs from them in a while, so I'm getting worried..
      --
      The ARSE 0.2d2 [sourceforge.net]. Sound -> Image -> New Sound.
      [ Hide Replies | Reply to This ]

              *

              *
                  Re:I'm worried (Score:1, Funny)
                  by SoupGuru (723634) Alter Relationship on Wednesday February 06, @01:41PM (#22323606)
                  me too.
                  --
                  **What doesn't kill you only prolongs the inevitable
                  [ Reply to This | Parent ]

      Me too.
      > On Wednesday 06, 01:41 PM, SoupGuru said
      > me too.

      me too! me too!
      --
      My blog
  4. shrinking pie split in two by prevajanje · · Score: 2, Insightful

    shrinking pie split in two, so that's even harder to sell, smart,...

  5. Missing Tag by R2.0 · · Score: 3, Funny

    Where's the "whattooksolong" tag?

    --
    "As God is my witness, I thought turkeys could fly." A. Carlson
  6. Uneblievable by oahazmatt · · Score: 3, Interesting

    All the corporate hullabaloo, layoffs of low-level employees, rebranding and marketing that only lasted, what, a few years, and they plan to just hit Ctrl + Z on the whole thing?

    --
    Those who believe the Internet is private,
    find their privates are on the Internet.
  7. Split by Teflon_Jeff · · Score: 2, Insightful

    So, they're going to make two departments, one that's profitable and growing, and one that can be cut and eliminated in one year? Makes business sense to me. They call it "cutbacks"

    --
    "Teach a man to build a fire, and he's warm for a day. Set a man on fire and he's warm for the rest of his life."
  8. AOL does NOT own Time Warner Cable by steelfood · · Score: 2, Informative

    Time Warner does.

    And yes, it's Time Warner, not AOL Time Warner.

    AOL has long been merely a division within Time Warner.

    --
    "If a nation expects to be ignorant and free in a state of civilization, it expects what never was and never will be."
  9. Party time... by owlnation · · Score: 3, Funny

    It's wonderful! 2008 may be a great year! Both Yahoo and AOL may soon be no more.

    Now if we can just find a way to rid ourselves of eBay, Real, Symantec and a few others...