AOL Time Warner Inc. (TWX) laid off a quarter of its workforce and then went on a shopping spree to pick up two new companies hoping to entice new users to its AOL.com Web site, as reported by the WashingtonPost.com.
The companies purchased were a video gaming Web site GameDaily.com and Userplane an instant messaging firm providing social-networking similar to MySpace. The company is trying to transform from an ISP to a Web portal that will draw revenue from online advertising.
Even after 5,000 layoffs and more cuts on the way the company has this to say about growth;
"We're going to continue to look for targeted ways in which AOL can grow revenue, advertising, audience and search capability and acquire rich content that allows us to more effectively and efficiently meet AOL's business strategies," said Nicholas J. Graham, an AOL spokesman.
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