Dulles, Va. - Media giant Time Warner plans (NYSE: TWX) to split AOL into two distinct businesses -- one operating its Internet access service and the other focused on its Web portal and online advertising -- CEO Jeffrey Bewkes said during a conference call on Wednesday. "This should significantly increase AOL's strategic options," said Bewkes, according to Reuters, adding that completing the split will take several months "because it's fairly complicated."

The Wall Street Journal reported that the move could "could signal Time Warner plans to sell or spin off AOL's access business," or combine "pieces of AOL with another online company."

AOL, which last year de-emphasized its core Internet access business in favor of an online advertising strategy, saw its operating income fall 70% in the fourth quarter, as the company lost another 740,000 dial-up customers.

As of Dec. 31, AOL had 9.3 million subscribers, down 3.8 million from the prior year.

Meanwhile, AOL has been on a buying spree of late to bolster its newly formed Platform-A advertising business, announcing deals for buy.at and Goowy Media this week alone.

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http://biz.yahoo.com/bw/080206/20080206005597.html?.v=1

http://biz.yahoo.com/rb/080206/timewarner_aol.html?.v=5 (Reuters)

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