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"In a move that shouldn\u2019t come as a surprise to anyone, the Wall Street Journal is reporting that Time Warner is poised to sell off AOL in separate pieces and will reportedly separate its advertising and content platforms with its dial-up business to get the most out of the poor sucker that acquires it.\nAccording to those close to the move, Time Warner believes AOL may be more valuable to them once it\u2019s separated and it believes that it can make about $10 billion off the sale of its parts.\u00A0 But as most analysts correctly point out, that\u2019s probably not going to happen.\n\u201CThe Yahoo discussions have valued AOL at around $10 billion, excluding the dial-up business,\u201D The Wall Street Journal is reporting.\u00A0 \u201CIn contrast, Time Warner\u2019s current stock price \u2014 around $14 \u2014 suggests a value of no more than $3 billion to $4 billion for the ad-sales and content businesses, some analysts say.\u201D\nWishful thinking or an attempt to capitalize on the Yahoo malaise?\u00A0 Most reports suggest both Microsoft and Yahoo are looking to acquire AOL, but Microsoft, obviously in no danger of worrying about money anytime soon, knows that AOL isn\u2019t worth the $10 billion valuation Time Warner is trying to place on it.\nBut for Yahoo, a company that has been rocked by more controversy than any other tech company in the past year, an AOL acquisition may be just the right move to allay some shareholder fears and keep Carl Icahn off Jerry Yang\u2019s back.\u00A0 And perhaps that\u2019s what Time Warner is banking on.\nAOL may look like an attractive target for some companies that are trying to expand their presence online, but what does Yahoo have to gain through an acquisition of Time Warner\u2019s stepchild?\u00A0 It\u2019ll acquire a company that\u2019s having serious trouble on the Weblogs, Inc. front and is desperately trying to find its way as a dial-up company in a broadband world.\u00A0 And although it is profitable, it has been held back by declining growth and revenue over the past few years and its prospects for growth are all but lost.\nThis is nothing more than another desperate plea by two companies with two totally different strategies.\u00A0 Time Warner is desperate to do away with AOL and finally put that problem behind it and Yahoo is desperate to acquire AOL to make its shareholders believe its management knows what it\u2019s doing.\u00A0 And if that happens, only one company will lose: Yahoo.\nIf any company acquires AOL, it\u2019ll be Yahoo.\u00A0 And not because Yahoo has grand plans for the future of this dilapidated firm, but because of its desperation to satisfy shareholders.\u00A0 I think Microsoft is too smart for this acquisition; at that price, AOL simply isn\u2019t worth it.\u00A0 But Yahoo doesn\u2019t have the luxury to simply walk away that easily.\u00A0 And in no time whatsoever, the company will be paying too much for too little.\nAOL company profile provided by TradeVibes\nYahoo company profile provided by TradeVibes\n"^^<http://www.w3.org/2001/XMLSchema#string>
<http://mashable.com/2008/08/04/time-warner-aol/>