Since the 2001 merger of Time Warner and America Online, "Time Warner's missteps have been particularly value-destroying at AOL. Since 2002, almost every strategic decision concerning AOL has been wrong," according to a 343-page report by advisory investment firm Lazard, hired by financier Carl Icahn to help drive out Time Warner's board, MediaPost reports. Lazard proposed that Time Warner be split into four: AOL, a publishing company, a cable company, and a content company.
The report highlighted Time Warner's decision to run AOL as a subscriber-only site up until last year, its failure to develop AOL's own search, and its tardiness in bundling broadband service with Time Warner Cable.
In response, Time Warner said, in part: "Our board and management regularly review all of the strategic options for managing this company to create the greatest value for our shareholders. We are on the right path. The company is delivering."
