Case speaks favorably of AOL spin-off

NEW YORK: Steve Case, the former chairman of AOL Time Warner Inc. and the architect of the mega-merger that formed the media company, has spoken positively about the idea of spinning off the company's under-performing Internet assets. America Online was billed as the growth driver for AOL Time Warner, but has become something of a weak link as it faces weak online advertising and sluggish demand for its core dial-up Internet service.

Its poor results are seen as a factor in the 57 percent fall in AOL Time Warner's shares since AOL bought Time Warner for $103.5 billion in stock in January 2001.

Case has publicly defended the idea of keeping the America Online assets intact in the face of speculation of a spin-off. In an interview with Reuters this month, Case said the board should give company executives time to succeed before considering a spin-off of the assets.

A representative of AOL could not immediately be reached for comment.

© Reuters