The share value of AOL Time Warner has tumbled 10% in the last couple of days, closing at just $19.60 (€22.28; £13.64), its lowest level since the merger of AOL and Time Warner.
Such decline reflects concerns over the complexity of AOL TW’s balance sheet (in the wake of the Enron scandal) and the performance of its America Online internet arm.
Fears about the latter have not been helped by recent management reshuffling. Earlier this week, Barry Schuler was removed from his post as AOL chairman/ceo, with his duties taken up by the parent group’s co-chief operating officer Robert Pittman [WAMN: 10-Apr-02].
In a fresh appointment, veteran radio executive James de Castro has been named president of AOL’s interactive group, with responsibility for the running of the flagship internet offering. He will take up his new post on Monday, reporting to AOL chief operating officer Mike Kelly.
Data sourced from: New York Times; AdAge.com; additional content by WARC staff