The board of AOL Time Warnertoday voted to remove AOL from its name, a sign of thedecline of the company's online unit and the failure of itsattempt to unite old and new media.
Chief Executive Richard Parsons said the move would reflectthe company's portfolio of businesses and end any confusion ofthe company's online unit, America Online, with the company asa whole.
The company said the change will be completed in the nextfew weeks. When it is, the company's stock will trade underTime Warner's old "TWX" ticker on the New York Stock Exchange,instead of "AOL."
America Online bought Time Warner for $112 billion in 2001in the biggest merger in history. Since then, the value of theonline division has plunged and the combined company has failedto live up to promises to transform the media industry.
While the latest move has few implications for itsbusiness, analysts greeted it as step toward erasing the memoryof the merger.
"The name reminds people of a mistake," said Hal Vogel ofVogel Capital Management, before the company's officialstatement was released. "AOL is now being recognized as adivision and not a leading part of the company."
Since the merger, the online unit has been the subject ofprobes into its accounting practices.
Discussions of a name change came to light after AOLfounder Steve Case resigned as chairman of the company inJanuary. Case remains on the board of the directors.