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10/11/2004 10:09
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tycoontony
N° messaggi: 514 -
Iscritto da: 17/3/2004
AOL to split business into four
Demand for fast internet connection is expected to keep growing
AOL, the world's largest internet services provider, is to split itself into four separate divisions.
The firm, which is owned by media giant Time Warner, is carrying out the move to cut red tape and boost profits.
Three top executives will also leave the company, which has already announced plans to trim the workforce by about 4%, or 700 employees.
AOL has seen its number of subscribers shrink in recent years amid fierce competition in a crowded sector.
In 2003 the firm lost 2.2 million internet members, though Time Warner chief executive Richard Parsons said earlier this year that AOL had been "stabilised".
Separate quarters
AOL will be split into a four divisions called Access, Audience, Digital Services and AOL Europe.
Each will be responsible for making its own financial and operational decisions.
The executives leaving the firm are Lisa Hook, president of AOL Broadband, and J Mike Kelly, chairman and chief executive of AOL International.
Joe Rip, AOL vice chairman, will move to a management position in Time Warner.
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10/11/2004 15:02
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bruwin
N° messaggi: 1860 -
Iscritto da: 25/6/2004
Well, irrespective of all that AOL might be and have done etc.., it cannot alter the fact that it's seen its share price fall from $95 at the start of 2000 to a current price of $17 !!
And its new parent company is no better either. I mean, it's bleeding money because of massive debt which is costing it the equivalent of 70% of its bottom line every year !! There must be something really screwy with its "business plan" !!
One can only hope that the 4 new pieces don't follow in these footsteps !!
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15/11/2004 15:36
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sedna
N° messaggi: 79 -
Iscritto da: 22/3/2004
The split might mean each unit being worth around $4.50 each. Demerges usually see the price fall off to start, like most IPO's excluding Google, which is truly exceptional.
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15/11/2004 18:32
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bruwin
N° messaggi: 1860 -
Iscritto da: 25/6/2004
The medium to long term price of each "piece" will eventually depend on how it performs in the market place. It may start off at $4.50 but that will, or should, depend on its initial tangible value because at that stage intelligent investors have virtually nothing by which to judge the "piece".
Of course, if any of these "pieces" inherit much of the financial mess of their parent then they may start off at an inflated price of 45c !!!
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Demand for fast internet connection is expected to keep growing
AOL, the world's largest internet services provider, is to split itself into four separate divisions.
The firm, which is owned by media giant Time Warner, is carrying out the move to cut red tape and boost profits.
Three top executives will also leave the company, which has already announced plans to trim the workforce by about 4%, or 700 employees.
AOL has seen its number of subscribers shrink in recent years amid fierce competition in a crowded sector.
In 2003 the firm lost 2.2 million internet members, though Time Warner chief executive Richard Parsons said earlier this year that AOL had been "stabilised".
Separate quarters
AOL will be split into a four divisions called Access, Audience, Digital Services and AOL Europe.
Each will be responsible for making its own financial and operational decisions.
The executives leaving the firm are Lisa Hook, president of AOL Broadband, and J Mike Kelly, chairman and chief executive of AOL International.
Joe Rip, AOL vice chairman, will move to a management position in Time Warner.