Time Warner to Split AOL

Time Warner would split the operating units of AOL, and would consider spinning off the company's cable division.

Inspite of AOL's increased earnings the internet sales dropped  and shed 3.8 million subscribers for the year. AOL's advertising and dial-up businesses are on opposite trajectories, so they were split.

We will be looking for these two aspects : 

"Looking forward we're trying to grow our customer usage and extend the competitive position of our advertising platform,"  "Doing these two things should allow us to take advantage of continued growth in online advertising.

"At the same time we need to complete AOL's business model transition so we're working on separating AOL's access and audience businesses so we can run them independently".

Last year, AOL purchased companies like Tacoda  and Quigo to bolster its advertising business, with the clear goal of improving its competitive position against Web giants Google and Yahoo.

Also, It would likely take several months to divide AOL into two independent business units,but investors welcomed the news in trading today.

Even shares were rising and the unit was doing well, AOL had plans to split business .The cable unit is a solid source of revenue, but its business is one that demands continued capital investment to drive that revenue.

"We expect to reach a decision on whether and how to change our ownership level by our first quarter earnings report at the end of April.

Overall revenue increased 2 percent to $12.64 billion.

So, after all the decision proved fruitful .