As for the precise timing of
Dismantling Dulles unit
The overhaul is expected to disperse employees in AOL's business affairs unit throughout the company, leaving only a handful of personnel at its Dulles, Va., headquarters.
The unit, comprised of more than 80 people, has been under scrutiny since The Washington Post reported last month of controversial ad and e-commerce deals. The unit traditionally played a role in various parts of big cross-media advertising deals. The reorganization is expected to streamline the processes involved in negotiating ad deals and clarify the role of business affairs in augmenting them.
AOL Time Warner insiders said members of the unit may report to AOL's Interactive Marketing ad sales chief Bob Sherman. The company declined to comment.
Earnings estimates drop
AOL Time Warner today revised its estimates for AOL downward. AOL's 2002 advertising and commerce revenue is approaching $1.7 billion but AOL Time Warner warned that it could come in 5% lower. Ebitda, or earnings before interest, taxes, depreciation and amortization, is expected to approach $1.7 billion to $1.8 billion. In July, the company said Ebitda for the AOL unit would range from $1.8 billion to $2.2 billion.