Time Warner Close to Spinoff of AOL: Reports

Time Warner's board meets Thursday and is expected to approve a separation of AOL into an independent company, report say.
Author:
Publish date:

Media company

Time Warner

(TWX)

could announce a separation of its AOL division as soon as Thursday, reports say.

Time Warner's board is meeting Thursday and is expected to approve a separation of AOL into an independent company, the

Wall Street Journal

reports, citing people familiar with the matter. The structure of the transaction hasn't been finalized, but the

Financial Times

reports executives prefer spinning off the whole division rather than a part.

Time Warner CEO Jeff Bewkes has signaled for months that Time Warner was likely to move forward without AOL, and the company said last month it expected to spin off all or parts of the business. Bewkes has been moving ahead with plans to focus Time Warner on its film, television and other content-creation businesses, the

Journal

notes.

The company has amended debt agreements that clear the way for an AOL spinoff, and in March the company tapped

Google's

(GOOG) - Get Report

Tim Armstrong as the new CEO of AOL.

Time Warner indicated the hiring of Armstrong was likely to lead to a separation of AOL as a stand-alone company. It would unwind the $147 billion deal in which AOL bought Time Warner in 2001, which many claim to be one of the worst corporate combinations in history.