AOL is planning to make layoffs, close some sites, and restructure parts of the company, according to a Jan. 19 TechCrunch report. An unnamed source cited by TechCrunch said that AOL was "stopping things that are not moving the needle while investing in things that are." The restructuring will occur in the coming weeks, the report said.
- Daniel Bentley Circa Senior Editor
Aol Is Restructuring, Layoffs And Site Closures Likely
'AOL is likely to shutter' Joystiq, reports Recode. Hey, wait a minute… that's us! […] Sources tell Joystiq that the staff is aware of the closure, but corporate hasn't officially told them, so they are unable to acknowledge anything out of concern that it will cause immediate shutdown.
- Alexander Sliwinski news content director at Joystiq
Joystiq, AOL's main video game website, acknowledged on Jan. 27 the multiple reports suggesting it would soon shut down as part of restructuring at AOL. Joystiq was founded in 2004 and largely competed against rivals like Kotaku and Polygon. AOL, which reports earnings on Feb. 11, has not commented on the restructuring reports.
AOL released mixed Q3 2014 financial results Nov. 6, with the company matching analysts' earnings expectations of 52 cents per share. The company posted $626.8 million in revenue, beating expectations of $623.5 million. The company's domestic dial-up service stood at 2.27 million subscribers, down from 2.33 million in Q2.
AOL's membership division, which includes dial-up service, generated $196.7 million in revenue in Q3, nearly one-third of the company's overall revenue for the quarter. Total ad revenue reached $473.4 million, up 18% from the year before.
The number of domestic dial-up subscribers has slowly declined over the past few years, with 3.6 million in Q1 2011, 3.1 million in Q1 2012, and 2.6 million in Q1 2013. The company had 2.5 million subscribers by the end of 2013.
AOL Reports Revenue Growth for the First Time in 8 Years in Q4 2012
Citing unnamed sources, Bloomberg reported on Jan. 6 that Verizon had approached AOL about a possible acquisition. While Verizon later said it was not in 'significant acquisition discussions,' CEO Lowell McAdam did admit interest in possible partnerships with AOL and other media companies.
- Nicholas Deleon Circa Technology Editor
Verizon Has Approached AOL for Possible Takeover or Joint Venture