We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
78,131 News Articles

Google exec gets AOL CEO job

Struggling ISP changes leadership again

Google executive Tim Armstrong has been hired by AOL to replace chairman and CEO Randy Falco, as the once-popular ISP struggles to keep pace with competitors under its new advertising-supported content model.

Armstrong was most recently the president of Google's Americas operations, where he was responsible for North American and Latin American advertising sales and operations. He was still listed as an executive on Google's website on Thursday afternoon, when AOL's parent company, Time Warner, made the announcement that it had hired him.

Falco, along with Chief Operating Officer Ron Grant, will leave AOL after an unspecified transition period, Time Warner said.

AOL's business has slumped under Falco's leadership. Many industry observers criticised his appointment in 2006 when he replaced Jonathan Miller, who had engineered AOL's successful transition from a business based on subscription fees to one based on advertising. Falco had virtually no experience running an online business at the time, and since his appointment AOL has largely failed to grow its ad revenue on par with the industry average.

In January he presided over layoffs of 700 people, or 10 percent of AOL's staff. That followed layoffs of 2,000 people, or 20 percent of the company, in 2007.

Time Warner praised Falco's work in its statement about his departure. Chairman and CEO Jeff Bewkes said Falco assembled a strong display ad network and grew the number of unique visitors to AOL's sites.

Bewkes said he expects Armstrong to be helpful in determining the optimal structure for AOL at Time Warner. In December, Time Warner partly blamed AOL for the lowered financial forecast for its 2008 fiscal year.

IDG UK Sites

OnePlus Two release date rumours: Something's happening on 22 July

IDG UK Sites

Apple MacBook Air lab tests and benchmarks: 11-inch & 13-inch, 256GB, 2014 Mac laptops tested

IDG UK Sites

How to prank people using Google Glass

IDG UK Sites

Evernote Skitch: the best way for creatives to doodle feedback