Well, as an investor-type, I can tell you that the reason these things are postponed is so that, when Newco is public, they can make this really positive-sounding announcement that there will be cost cuts (downsizing), and all the sell-side analysts will run to their models and raise their earnings targets because hey! a one-time charge for layoffs doesn't flow through your "normalized" earnings-per-share, but the benefits over time do.
So I'd say it's a bit of window-dressing and smoke and mirrors, as these spinoffs usually are.
@FormerEnglishMajor: and their year over year comparisons next year will be great because the first year will be burdened by the charge, right? so they'll make it look like, unburdened of Time Warner, they were finally able to unlock value.
@daveyjonesisdead: Yes. Not making the announcement isn't to prevent anything on Time Warner's part, but to put the finger on the scale on AOL's behalf. AOL doesn't have subscriber growth (quite the opposite), so the only way they can show earnings growth is by cutting costs, hard. Companies like Time Warner are "on the hook" for a bit after the spinoff (you don't want people suing you for fraudulent conveyance), so they try to save all the good news for the spinoff until after the company is on its own.
Time Warner doesn't want to compensate exiting employees. AOL can't afford a "deep restructuring" to be taking place during the sales process for the IPO to investors. Most importantly, I'd cynically state that the turd in the hand is worth way less than the birds in the bush here and that the sales process isn't exactly employing a frank appraisal of the company's future prospects.
Whatever the effect, it seems like creating content is the next direction for companies, as evidenced by Gawker, inc. I think AOL is taking their family-friendly name back into this.
Other than serving as an email domain of choice for perverted auto body shop workers named Randy who troll dating sites looking for flings, and Midwestern women who live and die by the casserole, why does AOL still exist? I mean really, could you possibly take someone seriously who had an @aol.com email address?
@overunderover: I have a huge bias against people with AOL email addresses. I think I would go so far as to toss a resume of someone who had one before I even read it.
Lennin say: "When the train of history rounds a bend, all the intellectuals fall off the top."
AOL was ridiculed even as it was the largest ISP around because it tried to pen its users into its own content. Sort of like those dreary strip malls at every military base front gate - they offer what they think you want, whether loans or pawning or go-go girls or pizza. AOL tried to build that mall around your vehicle and remain with you. Consequently those who remained with AOL were considered amateurs, and this before the merger. They shoulda consulted some dial-up users out in Tulip, TX, rather than Wall St lawyers and accountants.
@macbeach: I think I still have some of those. I was mildly poor and very thrifty in those years, so I signed up for such things just for the free disk(s).
Hey, who knew the world didn't want a slow, ad-plastered browser that headlined Britney Spears 24/7?
I saw the merger as a smart chance for AOL's founders to dump that turkey for cash before Hollywood woke to the fact it was tanking, and even the buzz from a cheesy product placement movie wasn't going to change the inevitable.
It was kinda like those Utah prospectors selling that played out silver mine to the Prince of Wales, back in the 1800s. Now it's buyer's remorse, like your pet rock but way more expensive.
@atlasspanked: AOL never had a plan beyond 56K. It was dialup, without a view beyond. If everybody had kept their analog modems, then this would've been still a smart deal.
10/22/09
10/05/09
10/05/09
So I'd say it's a bit of window-dressing and smoke and mirrors, as these spinoffs usually are.
10/05/09
10/05/09
10/05/09
10/05/09
09/16/09
09/16/09
07/25/09
besides, my mom still uses here aol address
07/24/09
07/24/09
07/24/09
07/25/09
07/24/09
05/28/09
AOL was ridiculed even as it was the largest ISP around because it tried to pen its users into its own content. Sort of like those dreary strip malls at every military base front gate - they offer what they think you want, whether loans or pawning or go-go girls or pizza. AOL tried to build that mall around your vehicle and remain with you. Consequently those who remained with AOL were considered amateurs, and this before the merger. They shoulda consulted some dial-up users out in Tulip, TX, rather than Wall St lawyers and accountants.
05/28/09
05/28/09
05/29/09
05/28/09
I saw the merger as a smart chance for AOL's founders to dump that turkey for cash before Hollywood woke to the fact it was tanking, and even the buzz from a cheesy product placement movie wasn't going to change the inevitable.
It was kinda like those Utah prospectors selling that played out silver mine to the Prince of Wales, back in the 1800s. Now it's buyer's remorse, like your pet rock but way more expensive.
05/28/09
You don't know nothin' 'bout how much I paid for my pet rock.
05/28/09
05/28/09
05/28/09
(What? Jokes were bad in the '80s, too.)