Dotcom downsizing.

Jul 29, 2002 (The Economist

ABIX via COMTEX) -- The giant merger of AOL and Time Warner in the US has not worked out as planned. Much was expected, but the results have been disappointing. On 18 July 2002, the chief operating officer of the giant, Robert Pittman, resigned from AOL Time Warner. Stalwarts of the more lucrative Time Warner are now in control of the merged entity. The conglomerate has suffered from the weakness of the advertising market. US regulators began looking at the giant's accounting practices, but little evidence of wrong-doing has emerged. The group is not short of cash, but the two cultures of the different entities have not meshed smoothly. The share price has dipped by 75 per cent since the merger in 2000. The firm is now looking for a new chief executive officer and a lot will ride on the strengths of this person.

Publication Date: 27 July 2002

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