Dulles, Va. - More than three years after launching its KOL service for kids aged 7-12 and Red service for teens, AOL plans to phase out both businesses, PaidContent.org reported.

Neither AOL nor parent Time Warner has so far commented on the report.

Both free services are highly customizable versions of AOL, providing kids with their own Web tools and content.

According to the report, AOL plans to keep the sites alive with a skeleton crew, but make no further investments into the businesses.

The site said that it isn't yet clear whether the company plans layoffs as a result of the move.

AOL reportedly considered spinning off the division at one point, but ended up cutting its budget after Ron Grant become the president and COO of AOL late last year.

Related Links:
http://tinyurl.com/2zqhd2 (PaidContent)

http://kids.aol.com/welcome