Time Warner’s board of directors have approved plans for the complete legal and structural separation of AOL from Time Warner. Following the separation, AOL will become an independent and publicly traded company.
Once the proposed separation is complete, AOL will compete as a standalone company and would be able to focus on growing its web brands and services as well as its advertising business.
Jeff Bewkes, chairman and chief executive officer of Time Warner, said: “We believe that a separation will be the best outcome for both Time Warner and AOL. The separation will be another critical step in the reshaping of Time Warner that we started at the beginning of last year, enabling us to focus to an even greater degree on our core content businesses.
“The separation will also provide both companies with greater operational and strategic flexibility. We believe AOL will then have a better opportunity to achieve its full potential as a leading independent internet company.”
Tim Armstrong, chairman and chief executive officer of AOL, said: “This will be a great opportunity for AOL, our employees and our partners. Becoming a standalone public company positions AOL to strengthen its core businesses, deliver new and innovative products and services and enhance our strategic options.”
