Home / Markets / Industries / Technology

Monday, June 16, 2008

AOL May Shed Dial-Up Business

FOXBusiness

AOL may sell its dial-up internet business after the company separates from Platform A advertising in July, according to the New York Post.

The Post reported today Time Warner was in discussions with EarthLink in March, and was considering a combination for dial-up provisions. However, talks were stymied so Time Warner could determine the structure of the sale along with revenue and debt issues.

Splitting off the dial-up business from the rest of AOL had been an “accounting nightmare," one confidential source told the Post.

Even though dial-up Internet is dying off, some private equity firms have shown interest in AOL’s dial-up division, the Post reported.

More than 8 million people in the U.S. still subscribed to dial up the company said in its first quarter, making AOL’s division worth $539 million a year.

Time Warner and EarthLink have discussed the terms of the deal, including EarthLink getting an equity stake in AOL as well as Earthlink purchasing the entire division, according to the Post.

Fox Business Video

- The Crisis With 20/20 Hindsight
- Nov 21, 2009
  
  FOXBusiness.com LIVE
- Jerry Rice Talks Career
- Nov 21, 2009
  
  NFL Receiver on career on the gridiron
- John O'Hurley as Venture Capitalist
- Nov 21, 2009
  
  Comedian on life as venture capitalist
- Excess Spending in Congress
- Nov 21, 2009
  
  Saving $100 Million
- Cavuto Business Report 11-20-09
- Nov 21, 2009
  
  Business Report: Cavuto