Time Warner Inc said on Thursday it will make a decision on AOL's future by the end of the year, addressing rampant speculation the online unit could be spun off or merged with another company. It also said it could see a complete separation of majority-owned Time Warner Cable, in five years, but no decision has been made yet.
AOL, one of the most closely tracked divisions at the world's largest media company, has undergone a transformation into an online advertising sales engine from its prior business of providing Internet access.
Time Warner Chief Executive Richard Parsons told a Merrill Lynch US media conference in London that the early results looked good and he was encouraged by AOL's progress.
"By the end of this year, we can make the call on AOL (on whether) we have found a business model or approach that can result in sustainable growth over time," Parsons said in the Webcast presentation. "We're in the right area."
His comments follow recent public remarks by Time Warner Chief Operating Officer Jeffrey Bewkes, who mused about the prospect of a stock offering for AOL, an idea the company has contemplated over time. A stock offering would make the once-mighty Internet company more competitive for acquisitions against larger rivals.
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