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CNN Live At Daybreak
AOL Spin-Off?
Aired May 27, 2003 - 06:14 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Time now though for a little business buzz. The founder of America Online, which of course is our parent company, is talking about a possible spin-off of the company.
Let's go live to New York and Susan Lisovicz.
We've been hearing a lot about that for the past few months.
SUSAN LISOVICZ, CNN FINANCIAL NEWS CORRESPONDENT: Right, but you know he's changed -- well he reportedly is changing his tune a little bit, Carol. You know Steve Case is the man who masterminded the merger that created the world's biggest media company. And now, according to the "New York Times," two senior companies say that Case, who founded AOL, has spoken positively about spinning off the America Online unit. However, Case's opinions may not have a big effect because of his diminished role in the company. He's no longer chairman. Dick Parsons assumed that role. He announced his resignation back in January.
Still, this is -- comes as sort of an about-face for Case, because he had publicly defended the idea of keeping America Online as part of the AOL Time Warner family. AOL bought Time Warner, of course, at the height of the Internet bubble. Since then, the company's stocks have lost more than half its value. But you already knew that -- Carol.
COSTELLO: Yes, believe me, I knew that. Is there any indication as to what Dick Parsons thinks about this?
LISOVICZ: Well there's really a sense that doing this now would be the equivalent of buying high and selling low, which you never want to do. Remember AOL used its inflated stock price to buy Time Warner. And AOL, it turns out, is one of the weaker links in the company right now. Plus America Online's accounting is right now the subject of two investigations, Carol, both by the SEC, as well as the Department of Justice. So it's -- you know that needs to be cleared up. So it's -- right now a sale would not probably fetch the best price.
COSTELLO: Understand perfectly. You'll look at the futures in the next half hour. Many thanks,...
LISOVICZ: We'll do.
COSTELLO: ... Susan Lisovicz, live from New York.
LISOVICZ: Sure.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
Aired May 27, 2003 - 06:14 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Time now though for a little business buzz. The founder of America Online, which of course is our parent company, is talking about a possible spin-off of the company.
Let's go live to New York and Susan Lisovicz.
We've been hearing a lot about that for the past few months.
SUSAN LISOVICZ, CNN FINANCIAL NEWS CORRESPONDENT: Right, but you know he's changed -- well he reportedly is changing his tune a little bit, Carol. You know Steve Case is the man who masterminded the merger that created the world's biggest media company. And now, according to the "New York Times," two senior companies say that Case, who founded AOL, has spoken positively about spinning off the America Online unit. However, Case's opinions may not have a big effect because of his diminished role in the company. He's no longer chairman. Dick Parsons assumed that role. He announced his resignation back in January.
Still, this is -- comes as sort of an about-face for Case, because he had publicly defended the idea of keeping America Online as part of the AOL Time Warner family. AOL bought Time Warner, of course, at the height of the Internet bubble. Since then, the company's stocks have lost more than half its value. But you already knew that -- Carol.
COSTELLO: Yes, believe me, I knew that. Is there any indication as to what Dick Parsons thinks about this?
LISOVICZ: Well there's really a sense that doing this now would be the equivalent of buying high and selling low, which you never want to do. Remember AOL used its inflated stock price to buy Time Warner. And AOL, it turns out, is one of the weaker links in the company right now. Plus America Online's accounting is right now the subject of two investigations, Carol, both by the SEC, as well as the Department of Justice. So it's -- you know that needs to be cleared up. So it's -- right now a sale would not probably fetch the best price.
COSTELLO: Understand perfectly. You'll look at the futures in the next half hour. Many thanks,...
LISOVICZ: We'll do.
COSTELLO: ... Susan Lisovicz, live from New York.
LISOVICZ: Sure.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
