Emblematic Mergers Break Up Finally

The most awaited news has finally come when the media legends Time Warner announced to spin off its partner AOL division and become a superior stand alone company. It was also stated that before this separation could happen, Time Warner will first buy the 5 % shares of AOL which is with Google. Once this is done, Time Warner would have the 100 percent ownership of AOL and it could cast if off to a separate company again. Also news from the Warner says that it expects this deal with Google to be over by the third quarter and the final separation by the end of this year.

Now that AOL is a separate company again, it could concentrate on its lost business and will try to grow its Web based services and brands. AOL could now run as an independent publicly traded company and can focus its attention on internet advertising as well.

Tim Warner

The Time Warner CEO Jeff spoke to the media that the separation would do good for both AOL and Time Warner as both can now focus on their core business needs. Both companies will now have flexibility in terms of planning strategies for their growth. It is worth mentioning here that AOL bought Time Warner in January 2001 when the company was in its highest peak. Soon in 2003, AOL showed dismal performances that lead Time Warner to remove AOL from its brand name. Right from that AOL has been struggling to push up and this move was highly awaited one.

Source: news.cnet

Related posts:

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  1. Adobe and Time Warner Join Hands

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