Time Warner to spin off AOL on 9 December

17 Nov 2009

Reuters reports that media conglomerate Time Warner Inc said on Monday that it will spin off its AOL ISP unit to shareholders on 9 December 2009, ending a nine-year merger that has been widely seen as a disaster. Time Warner shareholders will receive an AOL stock dividend for every eleven shares of Time Warner common stock they hold, effectively valuing AOL’s market capitalisation at around USD3.4 billion, according to the report. When the merger was first announced in January 2000, the ISP was valued at USD163 billion.

United States, Time Warner Cable (Spectrum)