Time Warner wants to split two AOL businesses

LOS ANGELES (Reuters) - Time Warner Inc is working on splitting AOL's audience and access businesses and running the two as independent entities, Chief Executive Jeffrey Bewkes said on Wednesday.

Bewkes also said the company's 84 percent ownership stake in Time Warner Cable Inc is "less than optimal" for both companies. He said the two companies are talking about operating improvements and changes to the ownership structure.

Martin said AOL's "costs will continue to be reduced and advertising should continue to grow" starting in the second quarter of 2008.

AOL's fiscal 2008 adjusted operating income before depreciation and amortization was likely to approach fiscal 2007 levels, the company said.

Martin said it will take "several more months" to separate the AOL businesses "because it's fairly complicated."