Executive Exodus At AOL Prepares The Firm For A New BeginningExecutive Exodus At AOL Prepares The Firm For A New Beginning

The exodus of four top AOL executives has renewed rumors that the firm is positioning itself to be sold to one of the Internet-centric companies seeking to expand their Web traffic.

Over the weekend, the Washington Post quoted an anonymous AOL employee who speculated that AOL was readying itself for a sale to the highest bidder several months from now. Time Warner, which owns AOL, has been under pressure for months, particularly from Wall Street raider and investor Carl Icahn, to sell itself. Icahn and other Time Warner investors have complained that the company's stock has languished for too long.

The renewed acquisition rumors drew a quick denial from a Time Warner spokesman. "We've said consistently that AOL is not for sale," he said. "It's a vibrant part of our company, and the new strategy is working."

AOL's new strategy calls for the firm to drop its longtime paid-membership model in favor of an ad-supported business.

New chief executive Randy Falco, who lives in New York and commutes weekly to AOL headquarters in Virginia, is said to be preparing a major restructuring of AOL.

In recent days, top executives -- all aligned with AOL's previous chief Jonathan Miller -- have announced their plans to leave the firm. They include Joe Redling, chairman of AOL international and president of AOL mobile; James Bankoff, executive VP of programming and products; Randy Roe, former general counsel and executive VP of consumer advocacy and privacy; and John Buckley, executive VP of corporate communications.

Falco is expected to announce his plan for the reorganization of AOL shortly.