Google executive Tim Armstrong moves to AOL

Tim Armstrong, the executive of Google is soon going to adopt a new role of AOL’s chief executive. This has fueled the rumors regarding the separation of AOL from the parent Time Warner Inc. The idea of an independent AOL has been supported by Google also for some time now.

Google on the basis of its investment in AOL which was $ 1 billion, requested Time Warner for their money either as a refund or spin the unit out to shareholders.

The appointment of Tim Armstrong as the AOL chief executive has created positive vibes on Wall Street. It is believed by Richard Greenfield of Pali Research that Armstrong probably has agreed to join AOL because he knows he will get a chance to manage a public company soon which was highly unlikely while he was at Google.

It is visible by efforts like spin off of AOL by Time Warner that the parent company is trying to streamline operations. AOL has bought Bebo Inc and also focused on its “Platform” which is an online advertising network. Nielsen Online has ranked AOL 4th in February for US Internet audience. AOL had 83 million users while Google has 134 million. AOL search is also used by many in US.

But looking at current conditions, an AOL IPO isn’t commented soon. A lot of analysts and investors are in the favor of Time Warner to spin off AOL. Many see the step of AOL and Time Warner joining hand in 2000 as a misstep.