Time Warner Set for AOL Spinoff: Report
Time Warner is set to announce a separation of its AOL Internet division as soon as Thursday, the Wall Street Journal reported.
Time Warner Chief Executive Jeff Bewkes has signaled for months that the media giant was likely to move forward without AOL, the Journal reported. The company said last month it expected to spin off all or parts of the business.
Time Warner's board are expected to meet and approve of the separation of AOL into an independent company on Thursday, the Journal said, citing people familiar with the matter.
Bewkes, who has headed the company for just over 15 months, has been moving ahead with plans to focus Time Warner on its film, television and other content-creation businesses, the newspaper reported.
According to the paper, Time Warner amended its debt agreements to clear the way for an AOL spinoff and hired Google advertising executive Tim Armstrong as AOL's CEO in March, a move Time Warner indicated was a precursor to a likely separation.
Time Warner is likely to turn out AOL as a single company and has not secured an independent valuation of AOL, a necessary step for its plan to buy Google's 5 percent stake in the unit, the Journal reported.
Time Warner shares closed 2.2 percent lower at $23 on Wednesday.