NEW YORK (Reuters) – AOL will reorganize its business divisions to simplify its structure as it focuses on boosting Internet advertising sales globally, according to a memorandum sent to employees on Wednesday.
The online division of Time Warner Inc., which in August sketched out a strategy to give away most of its services for free and cease marketing its dial-up Internet access business, plans to eliminate its four business units and create smaller product categories instead.
“We no longer have conflict among multiple business models, wherein the resources and messages designed to support our ‘Access’ business compete and, in some cases, negate the resources and messages meant to support our ‘Audience’ business,” AOL Chief Executive Officer Jonathan Miller told employees in the memo seen by Reuters.
“Starting last month, our whole company became an ‘audience’ business,” Miller said.
Four senior executives who reported to Vice Chairman Ted Leonsis will now report directly to Miller. They include executive vice president of video, marketing and portal Kevin Conroy, executive vice president of programming Jim Bankoff and AOL media networks president Mike Kelly.
Joe Redling, who ran the company’s Internet access business, will now be charged with expanding AOL’s international business, according to the memo.
The company also plans to establish a new reporting unit to expand its business globally.
“This is an effort in which AOL will expand its worldwide presence, generating advertising revenue with both English- and local-language portals and other sites,” Miller wrote.
AOL said last week that Leonsis would end his role in active management as of January 1, but will retain the vice chairman title and serve as an advisor to the company.