| MUMBAI:
Time Warner has announced its plans for the complete legal and structural separation
of AOL LLC, a subsidiary of Time Warner. Time
Warner chairman and CEO Jeff Bewkes said, "The separation will be another
critical step in the reshaping of Time Warner that we started at the beginning
of last year, enabling us to focus on our content businesses." The
separation will also provide both companies with greater operational and strategic
flexibility. "We believe AOL will then have a better opportunity to achieve
its full potential as a leading independent Internet company," adds Bewkes.
After
the separation, AOL will compete as a standalone company and will focus on its
web brands, services and advertising business. AOL will also continue to operate
its internet access subscription services in the US. The
proposed transaction will be structured as tax-free to Time Warner stockholders.
The transaction includes completion of the review process by the Securities and
Exchange Commission of required filings under applicable securities regulations
and the final approval of transaction terms by Time Warner's board of directors. "Becoming
a standalone public company positions AOL to strengthen its businesses, deliver
new and innovative products and services, and enhance our strategic options,"
says AOL chairman and CEO Tim Armstrong. At
present, Time Warner owns 95 per cent of AOL and the remaining 5 per cent is owned
by Google. As per the arrangement, once the proposed separation is completed,
Time Warner shareholders will own all of the outstanding interests in AOL. | 
