Thursday, October 20, 2005

AOL Announces Layoffs

Yesterday AOL announced the layoff of 700 employees.

This suggests that AOL may be trying to make themselves more attractive as a buy-out candidate. Up until now, most of the talk has been of AOL "partnering" with another company. Perhaps what Time Warner (AOL's parent) really wants to do is to unload the company altogether.

An article in today's USA Today says that none of AOL's suitors is "interested in AOL's Internet service business, which is large and highly profitable but also in decline as consumers shift to faster broadband access services."

If we're talking buyout, giant Microsoft is probably in the best position to win a bidding war.

Stay tuned . . .

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