Time Warner Inc. will spin off the entire AOL Internet unit by the end of the year, reversing a failed $124 billion merger that triggered record losses. AOL’s online advertising and Internet-access businesses will be separated into an independent, publicly traded company, New York-based Time Warner said today in a statement.
“A separation will be the best outcome for both Time Warner and AOL,” Chief Executive Officer Jeffrey Bewkes said in the statement. “The separation will also provide both companies with greater operational and strategic flexibility.”
Bewkes is getting rid of AOL, which has confronted falling ad sales during the recession, to focus Time Warner on its film and cable-television businesses. AOL has dealt Time Warner a series of setbacks since the 2001 deal: shareholder lawsuits, a regulatory probe and declining sales.
The parent company wasn’t able to sell or find a partner for the unit after talks last year with Google Inc., Yahoo! Inc. and Microsoft Corp.
“The obvious implication of spinning out all of AOL in one entity is that Time Warner’s efforts to sell AOL failed,” Fred Moran, a Boca Raton, Florida-based analyst at Benchmark Co., said in an interview. “Now, as a last resort, Time Warner is looking towards spinning the whole company out.”
Archive for the ‘Gambling’ Category
The odds on whether U.S. Treasury Secretary Timothy Geithner will leave by the end of June increased over the last week in a political prediction market, but traders still gave it only a small chance of happening.
On the Dublin-based Intrade (www.intrade.com/) prediction market, traders on Friday gave Geithner a 16 percent chance of leaving before midnight on June 30. While that is down from a spike of 20 percent on Thursday, the odds have risen since traders had an 8 percent expectation on March 13.
A Roman Catholic nun accused of taking more than $250,000 from the Archdiocese of Omaha and gambling much of it away has pleaded guilty to theft.
Sister Barbara Markey entered the plea to a charge of theft of more than $1,500 on Monday in Douglas County District Court, according to her attorney, J. William Gallup. She also agreed to pay $125,000 in restitution to the archdiocese.
In exchange, Gallup said, the state and the archdiocese agreed not to object to probation for the 73-year-old Markey. Her sentencing is set for July, and she faces up to 20 years in prison.
A woman playing the penny slots Saturday morning left the Resorts Atlantic City casino with her own little jackpot _ a new baby boy. Eight-months pregnant Nyree Thompson, 32, went into labor on the casino floor about 9:30 a.m. Thompson said she mistook labor pains for gas at first, but after going to the restroom told a security guard that she might be giving birth.
A Russian man lost his wife in a game of cards after putting her up as a stake instead of cash. Andrei Karpov from Murmansk had run out of money in a game of poker and offered his opponent his wife instead of cash to stay in the game. When he lost the game and his opponent Sergey Brodov turned up to claim his winnings his wife Tatiana was so angry she decided to divorce her husband and started a relationship with Brodov.