2farfromCO7
join:2000-10-14
Farmington, MI
| I tell you the right strategy: sell the AOL unit
Right now the AOL unit is clearly dragging down the stock. Buying Time Warner was an awesome move. AOL would be a $5 stock at best without it. Instead they cashed in while their stock was worth lots of money. Now AOL is being valued as a negative. It seems to me it's taking value from the company the way people are bashing it so much. If they spin it off, the analysts would lose the reason to bash it. Then AOL would report their earnings as a separate entity. It would force the market to give them a real valuation. If Case sells the AOL unit it would be like he traded a pure-play ISP(worthless) for a huge media giant and walked away with some cash to boot(the cash he gets from the AOL spinoff). If you people think that this guy is an idiot, you are clueless. |
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BridgeTapBob
join:2002-03-26
Indianapolis, IN
| Have you worked for AOL? The AOL Unit is not the side of the company losing money. The 300 million dollar movies being produced that come back with 50 million in profit are vein tappers. Not to mention actors who command 10,15,20 million for each movie.
Time Warner may have been the key to AOL's cable business intentions, but it came with a price. AOL posted profits every quarter when I worked there between 97 to 2000. Their footprint on the dialup pop side is dominant. It came down to eating TW's losses in order to obtain one of the largest cable networks. Sell off the AOL unit? Maybe so, but it would be much smarter decision for them to sell off all of their movie production companies (Including Warner Bros.). Some may say that is ludicrous....but NOT even blockbuster movies like "The MAtrix" & "Lord of The Rings" and the sequels will post a profit for AOL.
Im not sure where you get the data supporting your argument to sell off the AOL unit. The Time Warner departments need to be cut and streamlined.
Ted Turner made sure none of his spawns would be touched or spun off.
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"What do you mean Im past 18,000 feet!!!!'
[text was edited by author 2002-04-21 15:48:31] |
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