AOL, Time Warner To Split in Dec 09

Once again AOL will be an independent web services company . Back in Jan. 10, 2000, both AOL and Time Warner made history not only as the largest deal but also as the worst mergers of all time for whopping $111 billion.

The latest piece of news is Time Warner stockholders to receive 1 share of AOL for 11 shares of Time Warner stock they own. In a press release, issued by Time Warner, clearly states, “ Fractional shares of AOL common stock will not be distributed to Time Warner stockholders. Instead, the fractional shares of AOL common stock will be aggregated and sold in the open market, with the net proceeds distributed pro rata in the form of cash payments to Time Warner stockholders who would otherwise be entitled to receive a fractional share of AOL common stock.” All the above statement will be effective on December 09.

Needless to say that AOL past its prime as dial-up Internet service providers. The core business of AOL ranges from Webmail, Instant messenger, Internet access controls, Internet security suite to online content provider for publishers and advertisers. But now the challenge is it has to compete against the likes of Google, Yahoo and Microsoft.

Now AOL is free from the clutches of Time Warner, it is interesting to see what best can AOL do to rise from the ashes of the greatest blunder happened in corporate history. My suggestion to AOL: Take valuable advice from CEO of Apple,Steve Jobs, a man known for regaining the lost supremacy.

What’s your suggestion to AOL?

About the author: Lohith Amruthappa is a Search Engine Marketing specialist and blogger, currently managing inhouse SEO and PPC projects. You can visit for more information on SEO, PPC and Google analytics at http://www.lohithamruthappa.com