The New York Post reports that plans to make AOL email addresses free for high-speed customers are only the tip of the iceberg; in fact, they say, the Time Warner board is considering much more radical moves. Carl Icahn wanted to spin off underperforming units? Well, then, why not give shareholders what they want?!?
The plan the Post discusses seems much less radical than any Icahn could truly get excited about: they say Time Warner has been talking to the biggie media and internet companies about partnerships, and if that doesn't work out, the board might consider spinning off 20% of AOL to shareholders.
What is 20% of AOL worth? And which 20% might be released into the wilds? This seems an odd proposal, I'd be interested to hear any scuttlebutt you Time Warner watchers have heard on this rumored deal. But even more interesting is the balance of power between Time Warner president Jeffrey Bewkes -- perhaps heir to the Time Warner throne -- and AOL CEO Jon Miller, who the Post says is "playing second fiddle" to Bewkes in the upcoming board meeting discussions about AOL. Will Miller be given the axe, the Post intimates slyly? I hardly even dare ask the question.
Closing Bell: Stock bulls and dollar death (DDRX,GMCR, PEET, SBUX, EBAY, CI, TECD)
So long peak oil, here comes peak uranium
Black Friday expected to be strong, no promises for Christmas
Reader Comments (Page 1 of 1)
7-28-2006 @ 7:07PM
EJ Passeos said...
When does this get resolve?
How would like to work for a company that used to run roughshod over the competition, to be flailing from strategy to strategy without management support.
Mr. Miller has done a great job turning around the unit.
If anyone should be removed, it would be Dick Parsons. Clearly, some new blood could do some of the things Mr. Ichan correctly suggests.
TW must dump AOL now since they have repeatedly slandered their own division.
7-29-2006 @ 9:44AM
Robert Bunce said...
I Would like to know what happen. I bought AOL at the begining, it was doing great, Aol bought Time Warner, then it became AOL Time Warner, then became just Time Warner, now they want to dump AOL, what a jerk around AOL investers got from Time Warner.
7-30-2006 @ 8:07AM
mary said...
Has anyone heard a rumor that Microsoft has interest
in or has talks going on reguarding a purchase of AOL by Microsoft and an eventual phasing out of AOL?
7-31-2006 @ 3:35PM
Sam Ginsberg said...
Richard Parsons and his team of Gatekeepers MUST be pushed out. I am surprised that a company with the rich assets that TWX has ,has become a 16.50 stock. Icahn and the fund managers that have significant holdings ought to get rid of the lot.I am even more surprised that this is not a big fat takeover target.....
7-31-2006 @ 4:26PM
mn said...
It's time to get rid of Parsons after he went with the AOL merger he cost stock holders millions Bring in new blood and get rid of the some of the board members
7-31-2006 @ 7:50PM
BriarRobb said...
Lets look at the facts:
1)AOL bought TW and NOT the other way around!
2)AOL beat it's competition soundly each quarter.
3)AOL stock was at one time up over 200+.
4)AOL stock was upper 90s at the time of the merger.
5)AOL stock has sunk and been worthless ever since.
6)AOL needed Broadband and merged with a cable giant!
7)AOL, to this day, still has "zero" cable service.
Who needs to get rid of who? We certainly have short memories since I have repeatedly heard the public and TW reps themselves elude to buying AOL.
If your an AOL follower it doesnt make a difference what TW does since they have never fully bought into the merger in the first place. Get rid of AOL and the billions it still brings in revenue and it still maybe the best thing that ever happens to AOL.