AOL Tries to sell it’s dial up business, no one wants it
This is one of the more comical articles we have seen in a while.
AOL is attempting to sell the dial up business of AOL, the problem is that no one will touch it with a 10 foot pole. Would you want to spend billions to enter into the dial up market?
The comments came during Time Warner’s earnings call, where the company reported earnings of $1.03 billion (28¢ per share) on revenues of $12.6 billion. Profit was down 41 percent from $1.7 billion in the last quarter of 2006, while revenues were up 2 percent. AOL took a bath, however. Revenues were down 32 percent over a year ago, and the company continues to hemorrhage dial-up subscribers, with the number down 29 percent.
When was the last time you have heard ‘you got mail’ from your machine?
And the kicker, AOL has no intention of selling any of their more interesting parts, instead saying dial up or nothing.
As its dial-up fortunes have waned, AOL has begun to transform itself into a portal + advertising company similar to Yahoo, and that strategy is paying some dividends. Advertising sales were up 6 percent, content revenue grew by 7 percent. Time Warner is likely hold on to that part of AOL’s business; if it decides to get rid of that, too, it would be done separately from the dial-up business.
The funny thing is everyone said nothing, leaving AOL holding the dial up bag.
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