Contentinople - Ryan Lawler - News Bits: AOL Value Plummets Ahead of Spinout

Written by Ryan Lawler

Wednesday, September 30. 2009 at 11:35 AM EDT Post a comment

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How much is AOL Inc. (NYSE: AOL) worth? That's the question a couple of analysts have attempted to answer ahead of the company's planned spinoff from parent corp Time Warner Inc. (NYSE: TWX).

According to paidContent, JP Morgan analyst Imran Khan pegs AOL's value at around $4.2 billion, while Pali Research estimates the company is worth $4 billion.

Either way, that's much less than the $106 billion Time Warner Inc. (NYSE: TWX) originally paid for it, and also less than the $20 billion the company was valued at when Google (Nasdaq: GOOG) bought a 5 percent stake in the company in 2005.

Perhaps more importantly, the analyst firm valuations are lower than the $5.66 billion that AOL was valued at just a few months ago, when Time Warner bought back Google's 5 percent stake for $283 million.

In other news:

The Internet has become a bigger market for advertising in the U.K. than television, according to a new study by the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers International . U.K. advertisers spent £1.75 billion on the Internet in the first half of 2009, acounting for 23.5 percent of all ad spend there. That compares to the 21.9 percent market share that TV stations held during the same period.

If, like me, you own an iPhone in a major metropolitan area, this will come as no surprise, but Gizmodo reports that the average iPhone drops 30 percent of its calls in New York. Which would be funny, if it weren't so damn sad.

Tags: Advertising, AOL, Business, Europe, Technology, Time Warner

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