After a multi-billion dollar failed experiment, Time Warner has made moves to rid itself of the still profitable, but quickly dying AOL dial-up internet division.
AOL has now been ramping up its advertising business but it still lagging behind the industry. For the Q4 2007, ad revenue for the company grew 18 percent while the industry averaged propelled ahead by 25 percent.
The separation of AOL from Time Warner's growing content business should allow the company to focus on stronger, more profitable businesses. A rival executive noted that Time Warner has wasted billions of dollars trying to find the Right business model for AOL. “Follow the money. Platforms, not content businesses, are where the money has been made on the internet,” he added.
I'm sure Time Warner share holders can vouch for that last statement.













