Time Warner Set to Ditch AOL & Cable Unit

[Marcia]

Time Warner's new chief executive officer confirmed Wednesday that the media company is separating its struggling AOL access business from the division's growing online advertising business, a move that could lead to the sale of the traditional dial-up unit.

Jeff Bewkes, Time Warner's CEO, said the company also may move to sell all or some of Time Warner Cable, which has seen its separate stock slide by about 40% since the company put a 16% stake up for sale to the public a year ago.

Time Warner may shed AOL unit and cable [money.cnn.com]

And here's speculation from Wired about AOL's position in view of Microsoft's attempted Yahoo take-over, and the prospects of AOL being acquired:

AOL's prospects are limited, to say the least, in light of a possible deal between Microsoft and Yahoo...

...Here's the catch: AOL would make a delicious little acquisition for any business serious about pursuing the online advertising market.

Microsoft-Yahoo Merger Means Dwindling Options for AOL [wired.com]

It all makes for interesting timing, with AOL's purchase of buy.at affiliate network [webmasterworld.com].

[edited by: Marcia at 3:25 am (utc) on Feb. 7, 2008]

[Hugene]

Interesting, AOL might look like a tempting bait for Google, but I think the real interest should be Time Warner Cable. In my opinion, people at Google have understood that their business is too juicy not be attacked by the data providers, and thus Google's own interest in wireless bandwidth. Acquiring a cable company could be another great way of pressuring the other data providers to stay calm in their corners.

[theBear]

I don't know if I should laugh or cry.

I just got back on line this past weekend after having been off line for close to two months due to the lack of internal communication within Time Warner's Cable unit.

[gibbergibber]

-- Interesting, AOL might look like a tempting bait for Google, but I think the real interest should be Time Warner Cable. In my opinion, people at Google have understood that their business is too juicy not be attacked by the data providers, and thus Google's own interest in wireless bandwidth. Acquiring a cable company could be another great way of pressuring the other data providers to stay calm in their corners. --

That would raise serious anti-trust issues, if Google tried to use their market position to force suppliers to lower their prices.