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The CEO of Time Warner, Jeff Bewkes has announced the second quarter earnings of AOL along with the news of its split. News of the possible split were already making rounds some days ago, predicted to be announced with the news of the earnings.
We already know how hostile has Time Warner’s chief; Jeff Bewkes has been towards AOL and most probably the division is going to end up being pocketed by investors or the much interested team of Jerry Yang and Steve Ballmer. There has been a lot of delay at going ahead wit the later option but that is largely due to the financial constraints within Microsoft and Yahoo; not to forget how the two have been locking horns, slashing each other and having trouble at board meetings.
Revenues of the company dropped 16%, to $1.1 billion, while the advertisement revenues increased 2% ( $ 8 Million ). Operating income at AOL dropped 36 percent, to $230 million. CNET says that Internet Provider EarthLink may be interested in acquiring the access business from AOL. It seems that Time Warner will be getting rid of AOL once and for all now, as evident by the CEO’s hostile attitude.
I can’t believe they’re making that much profit. AOL has sucked since 1996!