2 in 1: AOL’s Internet Access and Web Services Become One Unit

AOL Inc (NYSE:AOL) is seeing a reorganization of the company planned by CEO Tim Armstrong, with the focus on merging its Internet access division with its web services division.

Designated the services group, this would be one of four units to be formed in the new organization. The others are advertising, local services and the Huffington Post media group.

The services group would be led by CFO Arthur Minson, and seeks to get AOL account holders to utilize more of the company’s offerings. “We had AOL services split up between multiple groups,” Armstrong said. “We have decided that putting them into the same structure with the same cohesion, will help us with everything from registration services all the way to the experiences we offer in mail and the home page.”

According to David Joyce, analyst at Miller Tabak & Co, New York, “Web services such as AOL Mail already help the company keep users on its site. They add value as it keeps users engaged, keeps them on the site longer, allows for greater search and display ad monetization.”

With AOL’s market value down to only $1.36 billion, all this may be too little, too late, and the company could well be a buyout target to PE investors who might take it private.

Here’s how top internet media companies are reacting to the news:

AOL, Inc. (NYSE:AOL): AOL shares recently traded at $14.06, up $0.06, or 0.43%. They have traded in a 52-week range of $10.06 to $25.66. Volume today was 125,588 shares versus a 3-month average volume of 2,000,900 shares. The company’s trailing P/E is 26.67, while trailing earnings are $0.53 per share. Get the most recent company news and stock data here >>

Yahoo! Inc. (NASDAQ:YHOO): YHOO shares recently traded at $15.51, up $0.04, or 0.26%. They have traded in a 52-week range of $11.09 to $18.84. Volume today was 3,749,468 shares versus a 3-month average volume of 29,472,000 shares. The company’s trailing P/E is 18.98, while trailing earnings are $0.82 per share. Get the most recent company news and stock data here >>

IAC/InterActiveCorp. (NASDAQ:IACI): IACI shares recently traded at $41.19, up $0.1, or 0.24%. They have traded in a 52-week range of $28.05 to $43.89. Volume today was 123,148 shares versus a 3-month average volume of 1,072,820 shares. The company’s trailing P/E is 18.01, while trailing earnings are $2.29 per share. Get the most recent company news and stock data here >>

Google Inc. (NASDAQ:GOOG): GOOG shares recently traded at $632.99, up $7.6, or 1.22%. They have traded in a 52-week range of $473.02 to $642.96. Volume today was 1,042,807 shares versus a 3-month average volume of 3,131,070 shares. The company’s trailing P/E is 21.58, while trailing earnings are $29.34 per share. Get the most recent company news and stock data here >>

Demand Media Inc (NYSE:DMD): DMD shares recently traded at $7.85, up $0.01, or 0.13%. They have traded in a 52-week range of $5.24 to $27.38. Volume today was 21,848 shares versus a 3-month average volume of 473,306 shares. The company’s trailing earnings are $-0.36 per share. Get the most recent company news and stock data here >>

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