AOL and Time Warner Split
AOL and Time Warner have split–ending their formal merge that was sealed in 2001– for a deal of $160 billion.
Qualified shareholders will get 1 of AOL for every 11 shares of Time Warner that they have.
AOL shares will be in trading starting Thursday, December 10. The current market value is $2.5 billion, a mere one-tenth of its highest value in the market.
The spin-off move of AOL was announced by Time Warner last May 28, 2009. The popularity of broadband has fragmented the promise of AOL with its dial-up internet model, which was the heart of the “deal of the century” in 2001. Time Warner is expected to sell its internet access division after today.
Before the merge, AOL was a giant in the internet service providers industry with over 30 million subscribers on several continents.
Meanwhile, Time Warner might shift its attention to Time, Inc., its magazine publishing arm as it is also been hit hard with the emerging shift to online news and information. Among its most notable magazines are Sports Illustrated, People and most famously Time.