AOL on Track to Spin Out This Year; Revenue Continues Tumble

Authored by Mark Hefflinger on July 30, 2009 - 10:37am.

Dulles, Va. - Time Warner (NYSE: TWX) CEO Jeff Bewkes reiterated on Wednesday that the media giant is on track to spin off its AOL unit around the end of this year.

"Separating AOL will benefit both companies -- enabling Time Warner to concentrate fully on our core content businesses and improving AOL's operational and strategic flexibility," said Bewkes.

AOL's recent struggles continued during the second quarter, when its revenue decreased 24% to $804 million -- the result of a 27% drop in subscription revenue and 21% lower ad revenue.

As of June 30, AOL's dial-up Internet service had 5.8 million subscribers, a decline of 510,000 from the prior quarter and 2.3 million from the prior year.

The unit will change names from AOL LLC to AOL Inc. upon its separation.

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