AOL spins off from Time Warner - Washington Business Journal
Thursday, December 10, 2009
Posted by: Nikki Mill
AOL spins off from Time Warner
Washington Business Journal - by Darlene Darcy Staff Reporter
AOL Inc. is officially on its own — for better or worse.
Beginning Wednesday, AOL starts a challenging new chapter, attempting to build up the company’s digital advertising and content publishing businesses and recast AOL as a digital media company rather than an Internet access provider.
AOL and Time Warner Inc. officially parted ways as Time Warner shareholders of record as of Nov. 27 received their allotment of shares in the new independent AOL.
Investors received one share of AOL for every 11 shares held in former parent company, Time Warner (NYSE:TWX).
When the market opens on Thursday, AOL will begin trading on the New York Stock Exchange under the symbol "AOL.” The company began trading as a separate entity on a preliminary, "when issued” basis under the symbol "AOL WI” as of Nov. 24. Since then, the stock has declined, closing at $23.50 on Tuesday.
After the market closes Wednesday, AOL will be added to the S&P MidCap 400 Index, falling short of requirements — a market cap of at least $3 billion — to be listed on the S&P 500 Index. AOL’s market cap was calculated, based on its when-issued price, at about $2.5 billion, according to David Blitzer, managing director and chairman of S&P’s index committee.