AOL set date to part company with Time Warner

NEW YORK - The unhappy mega media merger that defined the first dotcom boom will end next month as Time Warner sets 9 December as the date it will spin-off AOL.

According to a Reuters' report Time Warner shareholders will later this month receive a dividend in the form of one AOL share for every 11 Time Warner common stock they hold, which values AOL at around $3.5bn.

The price tag is along way from the heyday of AOL when in 2001 it bought Time Warner to become the world's largest media company, which was once valued at $240bn.

However, since that high AOL's road has been one of steady decline and more than ten thousand redundancies with more set to come as AOL CEO Tim Armstrong attempts to transform the company.

Last week it announced another 100 redundancies with 1000 more expected.

On Friday Armstrong said that the next wave of the internet would be about content with video playing a major role.

"That's why we are making such a big bet there," he said speaking in a keynote at the annual Media and Money Conference in New York.

"We're excited about video. You're going to see us do much more in the future."