The NYT reports that Steve Case is considering spinning off AOL. I'm not sure Case really has the authority to consider spinning off anything, but if it happened, it would be an overt and irrevocable public admission that the AOL/TW deal was a stupid idea in the first place. There's no high-minded contrarian explanation that defends buying high and selling low, and no one believes in the Magical Multimedia Synergy Fairy anymore.
AOL founder said to consider a spinoff [NYT]