It was reported that Time Warner Inc.'s
AOL LLC is cutting 10% of its ranks, or about 700 people. AOL CEO Randy Falco provided "some perspective" on that and other cost cutting decisions, while the company tries to grow its publishing, advertising and social media businesses. However, one in-depth report, citing several sources with intimate knowledge, said AOL was thinking about
selling social networking site Bebo -- which it acquired last year for $850 million -- for about $200 million as it hasn't met expectations.
AOL's value isn't doing so well itself. Google Inc. bought a 5% stake in the company to one-up Microsoft Corp. in the search wars, but has since
soured on its investment. The $1 billion investment in 2005 valued AOL at $20 billion, but
the latest estimates have its value around $5.5 billion. It was speculated that Yahoo! Inc. may want to buy AOL, but Yahoo!'s
new CEO Carol Bartz may not want to make things complex. -
Baz HiralalAOL cuts 700 employees, 10% of staffA Year Later, AOL Is Contemplating A Bebo Sale
Join Corporate Dealmaker's LinkedIn forum
Juergen Lasowski
And the winners are...
