This statement just came out from Time Warner/AOL: “Time Warner…will present the future business strategy of its AOL division at a separate meeting with investors to be held after its second-quarter earnings report on August 2, 2006. Details of this meeting will be furnished in the near future…Time Warner stated that recent media reports appear to be based on unauthorized disclosures, including of incomplete and largely erroneous financial information. Accordingly, the Company cautions investors not to draw conclusions regarding AOL’s future strategy until the Company’s presentation on August 2, 2006.”
This comes in light of reports about AOL’s plans to dump its ISP business, in favor of focusing on the online portal and communication services. Also, this specific statement has been prompted by a WSJ story this morning about some numbers: that AOL unit to sacrifice nearly $1 billion of operating profit through 2009 under a proposed plan, according to internal company forecasts reported in the story. The new proposal would cut roughly in half profit from AOL’s sale of Internet subscriptions in the U.S. in the next three years, the forecasts show, from $1.6 billion this year to about $800 million in 2009. According to the forecasts, AOL, which has 18.6 million U.S. subscribers now, would end up with just over six million by the end of 2009.
Related:
— AOL’s Plan for a Clean Break
— More on AOL’s Free Services Plans: Cable/Telco Partnerships; Which Content; Copying Yahoo
— AOL May Offer its Suite Of Services For Free; $2 Billion May Disappear
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