The long-promised spinoff of AOL will finally get a start date this Thursday, reports TechCrunch:
Sources close to AOL tell us that the board of directors will make a final decision on the AOL spinoff at a board meeting this Thursday, May 28, possibly undoing the $147 billion 2001 merger of the two companies. Sources characterise the decision as “a done deal.”
Of course, the AOL spinoff has been a “done deal” for months now. Here’s how we know:
- New CEO Tim Armstrong would not have taken the job if it weren’t.
- In April, we reported that Time Warner asked bondholders for an adjustment to bond covenants, “which would basically move debt off of AOL and onto HBO. In addition to cleansing AOL’s balance sheet, it also removes various restrictions off of AOL’s books and the transfer of its assets.”
- Time Warner CEO Jeff Bewkes mentions it during most every quarterly call.
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