Dulles, Va. - Following months of speculation about a possible spin-off or sale of the company, media giant Time Warner said on Thursday that it will make a decision about the future of AOL by year's end, Reuters reported.

Speaking at a media conference in London, Time Warner CEO Richard Parsons was quoted by Reuters as saying that he's been encouraged by AOL's performance since switching its business model to ad-supported online content and services.

"By the end of this year, we can make the call on AOL (on whether) we have found a business model or approach that can result in sustainable growth over time," said Parsons. "We're in the right area."

Earlier this spring, Time Warner refuted analysts' speculation that AOL was on the block. Potential suitors could include Yahoo, Microsoft and Google, the latter of which already owns a 5% stake in AOL.

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