Time Warner to log off from AOL

In 2001, internet giant America Online (AOL) and media conglomerate Time Warner made history when they announced a dot-com inspired $164 billion (£83.6 billion) merger to create a new media company with interests in everything from movies to cable TV to internet access. That dream is almost over.

Having failed to realise the lofty aims for the merged business, and still scarred from the dot com implosion, Time Warner has begun work on demerging the AOL business that cost it so dear, with an eventual break-up of what is left of the once dominant ISP.

Time Warner chief executive Jeff Bewkes, who took over the reigns of the media group at the beginning of the year having previously served as chief operating officer, has outlined the company's plans to separate the AOL operation, which is struggling with a terminal decline in its internet access business and is trying to reinvent itself as a content-driven service.

"This should significantly increase AOL's strategic options," Mr. Bewkes said on a conference call to discuss the company's financial figures. "The results of all this is that we continue to expect AOL to maintain its overall profitability on a considerable scale," chief financial officer John Martin added.

AOL's UK customer business is already in the hands of Carphone Warehouse, which bought it for £370 million in October 2006.

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