AOL Time Warner have announced a management shake-up amidst allegations in Thursday's Washington Postthat it propped-up ad revenues in 2000 and 2001.
In the shake-up, Chief Operating Officer Mr Robert W. Pittman - one of the creators of MTV - has decided to step down as COO and as a director of AOL Time Warner and leave the company after completing the transition to a new CEO at its America Online division.
In a statement issued this morning, Mr Pitmann said: "I've decided that after a new CEO is in place at AOL, I won't return to AOL Time Warner as Chief Operating Officer.
"Having worked so hard to build the AOL service and brand, and after then going through the merger and the last 18 months, it's time to take a break. I'm proud of what we built at AOL and believe that it has a great future. Likewise, I have confidence in AOL Time Warner's prospects. . ."
Over the past year, AOL Time Warner's stock has dropped from $47.25 to $12.45 at yesterday's close after a 5 per cent drop on heavy volume.
According to the Washington Post, yesterday's decline is attributable to the management changes. AOL carried out a series of unconventional business deals to help generate ad and commerce revenue before and after the merger.