N.Y. Times: Time Warner Head Open to Deal for AOL

Authored by Mark Hefflinger on March 12, 2008 - 8:00am.

Dulles, Va. - The head of media giant Time Warner (NYSE: TWX) said that he is open to a deal combining AOL with another company, The New York Times reported on Wednesday. CEO Jeffrey Bewkes told the paper that he favors "whatever configuration makes it the strongest and the most valuable." AOL reportedly has been in discussions about a possible combination with Yahoo (NASD: YHOO), which has been attempting to fend off a hostile takeover by Microsoft (NASD: MSFT).

Bewkes also said that AOL's dial-up Internet service -- which still has 9.3 million paying subscribers -- is no longer in the company's future plans, and may be spun off.

The Times, meanwhile, painted a bleak picture of AOL's new Platform-A advertising division, which now has replaced three of its top four executives since its launch last summer.

Citing recently departed executives, the paper called the environment at AOL "acrimonious," with "senior executives worried about making their aggressive quarterly ad sales goals."

The company reportedly will not meet its first-quarter revenue goals.

On Monday, AOL named former Advertising.com head Lynda Clarizio as Platform-A's new president, replacing Curt Viebranz, the former CEO of Tacoda.