AOL's uncertain future

Time Warner will discuss its future plans for AOL next month, company executives said this week. Investors are eagerly awaiting the details, in light of a report in the Wall Street Journal which speculated that the proposed moves could cost the company up to $1 billion.

The costs would come as the media conglomerate towards a free, advertising-based products.

Time Warner officials dismissed the Journal report, saying that it was based on "incomplete and largely erroneous financial information." But bloggers were not optimistic about what the financial future has to hold.

Blog community response:

"Given the apparently heroic assumptions above, however, shareholders would probably be wise to brace for losses. The company is probably still smart to pursue the plan, but shareholders are not likely to get off this easy."
--Internet Outsider

"Even more ironic is that AOL has put its European units up for sale, with some likely to be snapped up and eventually re-branded to further the 'four play' stance in Europe – what an opportunity Time Warner blew."
--The Business News Source

"Bottom line: this is high-risk for Time Warner's stock (TWX), and the value investors who currently own it may not want to stick around to see what happens."
--Seeking Alpha