Time Warner on AOL: We Ought to Have That Removed…
by John Paczkowski
Posted on April 6, 2009 at 2:30 PM PT
Here’s further confirmation that Time Warner (TWX) is looking to spin off AOL. In an SEC filing Monday, the company said it is seeking to amend debt agreements that restrict it from unloading the struggling business. Coming as it does after the hire of Tim Armstrong, a former Google (GOOG) executive, as AOL CEO and chairman, the move would seem to suggest that Time Warner CEO Jeff Bewkes has given up on the idea of an AOL merger with Yahoo (YHOO) and is pushing ahead full-bore with a spinoff that, frankly, always seemed like the most likely option. “We view this announcement as significant as it clears a major hurdle to spin AOL to Time Warner shareholders,” Michael Nathanson of Sanford Bernstein wrote in a note to clients Monday. “This potential move, along with the recent hiring of Tim Armstrong, suggests that the spinning of AOL could likely be announced in the next few months.”
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