Tim Armstrong is the new chief executive of AOL, a division of Time Warner (NYSE: TWX) and parent of BloggingStocks. Armstrong, a senior VP at Google (you can read the press release here) replaces Randy Falco, who joined AOL in November, 2006. Also leaving AOL is President Ron Grant.

Time Warner shares initially traded down in after hours trading following the announcement, but were leveling off by 6:30. The stock closed at $8.32 today, a gain of 5%, and at 7pm was at $8.31.

Time Warner Inc. (NYSE: TWX) is sending its AOL corporate headquarters to New York City, where it can be closer to the Time Warner Inc. parent and closer to the ad markets. While this is a significant shift, this is not an entire relocation of the unit. Upon hearing of the AOL headquarters move the first thought was that this was going to be a move of thousands of workers, although that does not appear to be the case after looking through the news.

The largest transition here is integrating all of its newly acquired advertising properties into a new entity called Platform A, building on its Advertising.com network and the recent acquisitions of TACODA, Third Screen Media, Lightningcast and ADTECH. Platform A already reaches more than 90% of the domestic online audience, according to comScore Media Metrix. This was an area I had noted before as being the brightest spot inside the company if you looked at the total reach.

AOL will relocate its corporate headquarters to 770 Broadway in New York City, where the company has leased office space and where AOL's New York-based advertising and programming operations also will be based. According to the press release, AOL will continue to have significant operations in Dulles, VA, as well as offices in Mountain View, CA, and other locations.

AOL's Randy Falco and Ron Grant also present tonight at Merrill Lynch's Media & Entertainment Conference at 7:00 PM. At the same link you'll see that Dick Parsons, Chairman & CEO, will present at the Goldman Sachs Communacopia Conference tomorrow at 2:05 PM EST.

According to unnamed sources cited in news reports, three top executives at AOL, a subsidiary of Time Warner, Inc. (NYSE: TWX), are leaving the company.

The executives heading for the exits include Jim Bankoff, who ran consumer and publishing divisions, John Buckley, head of corporate communications, and Joe Redling, who ran international operations, according to the Associated Press. AOL has not made an official comment on the reports.

These departures closely follow AOL getting both a new chief executive and a new president. On Nov. 15, Randy Falco joined AOL as CEO. He came from NBC Universal Television Group, where he was president and COO. And on Nov. 21, Ron Grant, formerly a senior vice president of operations at Time Warner, joined AOL as president and CEO.

According to reports, the executive departures were voluntary. Provisions in their contracts allow them to leave following management changes at the top.