How do you pronounce that?

November 23rd, 2009 - Posted by Admin

When AOL bought Time-Warner in 2000, there were many people suggesting that the $163 billion value company would become a monopoly. Now, nine years later, it is a laughable concept. AOL is separating itself from Time-Warner to again become an independent company, now worth only $3 billion or so.

On December 10th, the company intends to change it’s moniker–but not radically so. The change will be from “AOL” to “Aol”. No one knows if you’re supposed to say it the same, or pronounce it as a word, but the company says it’s a clean break from the past while respecting their history.

But it isn’t all good news for employees at AOL/Aol. They recently announced that they will be cutting some 2,500 additional jobs. They hope to save some $300 million annually by cutting salaried employees before they again separate from Time-Warner. It is not surprising that AOL is trying to save money via cost cutting despite a stronger-than-expected quarter. During a recession is the perfect time to cut salaries precipitously because it is wholly expected, whereas it comes as a surprise in a normal market. This is a sign, though, that the media industry isn’t done cutting jobs.