Time Warner will spin AOL off into an independent company, according to CNN, after merging in January 2001.
In a statement, Time Warner CEO Jeff Bewkes said, "We believe that a separation will be the best outcome for both Time Warner and AOL."
The merger eight years ago was seen as a laudable attempt to merge old and new media, but Time Warner's stock has plummeted around 80 percent in the time since. It owns 95 percent of AOL, and will buy the remaining stake from Google.
A pioneer in internet service, AOL has steadily lost customers for its dial-up subscription business, and has attempted to re-focus on internet advertising.
-- By News Editor Annemarie Moody
