Time Warner, parent company of AOL, has reported their first quarter earnings for 2009 and the news isn’t great for AOL. Ad revenues have dropped 20% or $109 million. The losses largely contributed to the 7% decline parent company Time Warner experienced overall.
The losses added to Time Warner’s desire to rid itself of AOL.
“With our separation of Time Warner Cable, Time Warner has become a more content-focused company. We’re also working to determine the right ownership structure for AOL,” said Time Warner Chairman and CEO Jeff Bewkes. “With our powerful brands, industry-leading scale, track record of innovation, heightened focus on efficiency and strong balance sheet, I’m confident that we’ll continue to make progress toward our key long-term goals – to be the world’s leading content company and improve returns to our stockholders.”
After shopping itself to potential buyers, Time Warner appears to be posed to spin off the struggling internet company. Time Warner has notified Google of its intent to purchase their 5% stock in AOL.
AOL recently hired Tim Armstrong, former Google Senior Vice President, as CEO.