| HOME | NEWS ALERTS | SMK RECOMMENDATIONS |


Investors endorse AOL spin-off talk
NEW YORK (CBS.MW) -- AOL Time Warner's shares gained Tuesday after a report that Steve Case wants to spin off the troubled America Online unit.

The New York Times, citing anonymous sources, reported that the former America Online leader wants to re-acquire control it from the world's largest media company. AOL spokespeople didn't return a phone call seeking comment.

AOL (AOL: news, chart, profile) rose 22 cents, or 1.5 percent, to $14.93. The shares have declined 22 percent over the past year, exceeding widely followed stock market indexes.

Further, Tom.com Ltd., a media company commanded by billionaire Li Ka-shing, is negotiating to purchase a position in a China television station from AOL, according to FT.com.

Elsewhere, Vivendi Universal stock (V: news, chart, profile) fell 45 cents, or 2 percent, to $17.96, even though the company enjoyed a spectacular box office showing with its summer blockbuster movie, "Bruce Almighty." Audiences loved Carrey's return to comedy after the disastrous movie "The Majestic," in which Carrey tried a serious acting role.

In the second-largest Memorial Day weekend in history, "Bruce" attracted $86 million in ticket sales, making it the top film in the U.S. and Canada and, significantly, bumping Warner Bros.' sensation "The Matrix Reloaded" from the top spot.