Feeds

Time Warner mulls flogging AOL US dial-up biz (again)

Aged Operator Leftovers

Next gen security for virtualised datacentres

The boss of media omnicorp Time Warner said yesterday he is considering selling off the AOL dial-up business Stateside.

It's not the first time the idea has been floated, and chief exec Richard Parsons told the Goldman Communacopia* conference the firm would be taking an especially hard look at it over the next 12 to 18 months, Reuters reports.

Many Wall Street types reckon Time Warner's flagging stock would be worth more if it was broken up into more manageable chunks.

The problem with the plan, as Time Warner well knows, is that these less-web-savvy consumers still provide a large proportion of traffic to AOL's front page. The old school portal is still the group's best foothold in the online advertising scramble.

When Carphone Warehouse bought AOL's UK broadband subscriber base it agreed to keep sending users to AOL.co.uk, but striking a similar bargain in the US, given its underdeveloped ADSL market, could be more difficult. Any buyer would need a plan to upsell the subscriber base to broadband at some point, making the value of an association with a dotcom relic questionable.

"It's much more complicated here than in Europe," Parsons lamented, but pleaded, "we would like to see if the whole is greater than the sum of its parts, which I believe it to be". Investors have called for Time Warner cable, the US TV and broadband division, to go it alone too.

AOL's other European ISP businesses have also been ditched in the last 18 months as part of a major restructuring that has seen a quickfire run of executive changes. ®

*Send all vomit to Goldman Sachs, 101 Giant Bank Street, New York, NY 10101.

Boost IT visibility and business value

More from The Register

next story
UK fuzz want PINCODES on ALL mobile phones
Met Police calls for mandatory passwords on all new mobes
Canadian ISP Shaw falls over with 'routing' sickness
How sure are you of cloud computing now?
Don't call it throttling: Ericsson 'priority' tech gives users their own slice of spectrum
Actually it's a nifty trick - at least you'll pay for what you get
Three floats Jolla in Hong Kong: Says Sailfish is '3rd option'
Network throws hat into ring with Linux-powered handsets
Fifteen zero days found in hacker router comp romp
Four routers rooted in SOHOpelessly Broken challenge
New Sprint CEO says he will lower axe on staff – but prices come first
'Very disruptive' new rates to be revealed next week
PwC says US biz lagging in Internet of Things
Grass is greener in Asia, say the sensors
Ofcom sees RISE OF THE MACHINE-to-machine cell comms
Study spots 9% growth in IoT m2m mobile data connections
O2 vs Vodafone: Mobe firms grab for GCHQ, gov.uk security badge
No, the spooks love US best, say rival firms
Ancient pager tech SMS: It works, it's fab, but wow, get a load of that incoming SPAM
Networks' main issue: they don't know how it works, says expert
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Solving today's distributed Big Data backup challenges
Enable IT efficiency and allow a firm to access and reuse corporate information for competitive advantage, ultimately changing business outcomes.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.