AOL to spinoff from Time Warner

Time Warner and AOL are separating, with Time Warner buying back Google’s 5% stake in AOL before offering the internet firm to its shareholders.

Time Warner announced last month that it would be spinning off some or all of the internet company.

Jeff Bewkes, Time Warner chairman and chief executive, said: “”We believe that a separation will be the best outcome for both Time Warner and AOL.

“The separation will be another critical step in the reshaping of Time Warner that we started at the beginning of last year, enabling us to focus to an even greater degree on our core content businesses.

“We believe AOL will then have a better opportunity to achieve its full potential as a leading independent internet company.”

Tim Armstrong, former Google advertising executive, who became AOL chief exec AOL in March, said: “Becoming a standalone public company positions AOL to strengthen its core businesses, deliver new and innovative products and services, and enhance our strategic options.”

AOL announced its takeover of Time Warner in January 2000, with the deal eventually worth $147 billion (£92 billion).