Today America Online announced it will increase the price of its unlimited-use plan 9% to $23.90 a month. This is the first hike in this service since April 1998. This is designed to help in small part the funding of the restructuring plan, which is ultimately designed to yield significant cost savings.
The company will spend $400 million on the cancellation of leases and other contracts, but an AOL spokesperson commented the company was unable at this time to specify which properties would be abandoned, but did note that there was an extensive review in progress of all options. The remainder of the restructuring cost will go to severance pay. According to an SEC filing, AOL will consolidate operations and exit others. Warner Brothers Stores, in malls across America, will either be shuttered or sold.
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