Time Warner, parent company of AOL, may be preparing to spin off AOL according to reuter.
NEW YORK (Reuters) - Time Warner Inc said on Monday it is asking some bondholders to change credit terms, a move expected to pave the way for a spin-off of its beleaguered Internet unit AOL.
The media conglomerate, whose shares fell 4 percent in early trading, said the change in credit terms will allow for a possible change in ownership at AOL.
The unit was once how most people found their way onto the Internet. It has since been left behind as a relic as cable and phone companies picked off subscribers and Google and others swooped in to dominate online advertising.
Last month Time Warner Chief Executive Jeff Bewkes lured former Google Inc executive Tim Armstrong to head AOL with the possibility of leading a spin-off.
“We view this announcement as significant as it clears a major hurdle to spin AOL to Time Warner shareholders,” Sanford Bernstein analyst Michael Nathanson said in a note to clients.
What a mess this AOL and TW merger has turned out to be in retrospect.


