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AOL reorganizes, will raise rates

Published on .

America Online is reorganizing its management structure, as expected, consolidating all operations into three brand groups: AOL Interactive Services, CompuServe Interactive Services and AOL Studios. AOL Networks President Robert Pittman will become president and chief operating officer of AOL with all three divisions reporting to him. AOL Chief Financial Officer Lennert Leader will become the president of AOL Investments and its future acquisitions. Ted Leonsis remains president of AOL Studios, overseeing creation and development of online content.

In a separate announcement, AOL said it will raise its flat-rate monthly fee to $21.95 per month, from $19.95. Industry watchers wondered if the increase will spark an Internet-wide fee raise.

Copyright February 1998, Crain Communications Inc.

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