Home › DMW Daily › April 6, 2009

Time Warner Sets Stage for Potential AOL Spin-Off

Authored by Mark Hefflinger on April 6, 2009 - 8:29am.
New York - In a sign that a spin-off of AOL could be near, parent Time Warner (NYSE: TWX) on Monday asked bondholders for permission to change covenants that would allow the company to transfer AOL's properties and assets.

The bondholders, who collectively own $12.3 billion of debt, would receive $5 for each $1,000 they own if they consent to the changes, The Wall Street Journal reported.

Many investors and analysts have long been calling for the spin-off or sale of AOL, which has struggled to generate revenue since the demise of its once-dominant dial-up Internet business.

The unit, which now focuses on online advertising, also has been hit hard of late by the ongoing economic downturn.

Speculation of a potential spin-off was further fueled last month when Time Warner hired former Google executive Tim Armstrong to replace Randy Falco as AOL's chairman and CEO.

 

Related Links:
http://snipurl.com/fcshg (SEC)

http://online.wsj.com/article/SB123902928871592917.html

Published in DMW Daily, April 6, 2009
tags: Deals | Advertising | AOL | Acquisitions | Time Warner |



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