• CNNMoney.com, Wednesday, October 25, 2006 11:30 AM

Give credit where credit is due: following BusinessWeek's what's-wrong-with-AOL story yesterday, CNNMoney points out that Time Warner's shares have surged 22% since its second-quarter earnings in August, closing at a 52-week high of $19.78 Friday. It's also trading at its highest level in two years.

Time Warner's share price may eclipse $20 for the first time in six years, and while many attribute the boost to the initial public offering of Time Warner Cable, several analysts have also applauded the new ad-based strategy for AOL. Citigroup analyst Jason Bazinet called the move to dump its subscription business "simply brilliant," while Morgan Stanley raised its outlook for the stock to "outperform."

As ever, there are rumors that Time Warner will sell the Web portal; in fact, AOL CEO Jonathan Miller suggested as much in a recent article in Britain's Telegraph, but Time Warner execs insist the Internet unit is going nowhere for the time being, although some believe that may change if AOL's turnaround is a success.

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