Time Warner Preps AOL For Potential Dialup, Advertising Deals (TWX)

It’s taken a long time, but it’s finally done: Jeff Bewkes’ Time Warner (TWX) has completed the “internal work” necessary to break off AOL’s original business — dial-up Internet access — from its advertising and content business, the Wall Street Journal reports. The company will reportedly make the announcement during its Q2 earnings report on Wednesday.

Now it will get serious about plotting the Internet unit’s next steps, including whether to sell one or both of the businesses.

For months Time Warner has been exploring options for the two sides of AOL, including whether to sell or combine the businesses in a partnership with other companies. But talks have been held back by uncertainty about how revenue and liabilities would be split between the two sides, which complicated putting a value on the businesses.

Possible suitors for AOL’s content/advertising business: Microsoft (MSFT) or Yahoo (YHOO), both of which it’s still holding “informal discussions” with, the Journal reports. Potential buyer for its dialup Internet business: EarthLink (ELNK), which has pared down its investments and is focusing on the cash-generating dialup industry — and has eyes for AOL.

See Also:
Warning To Jeff Bewkes: Mess With Former AOL Boss Jon Miller At Your Own Peril
AOL Tacoda Ad Network Turns Off The Lights, Asks Customers To Move To Ad.com
Time Warner Killed Jon Miller/Yahoo Board Deal

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