±±¾©Èü³µpk10

Case was the founder of America Online, the leading internet service provider that merged with Time Warner in 2000. Since the merger, which was positioned by the companies as a ground-breaking deal that would bring together the best of new and old media, shares in AOL Time Warner have lost 70% of their value.

In particular, the America Online division of the company has faced a string of problems, from accounting discrepancies to falling advertising revenue. Most recently, it was revealed that AOL Time Warner would be taking a one-off $10bn (£6.2bn) charge, written off against America Online.

America Online is now cutting costs by slashing its marketing spend and laying off staff. The company dumped its advertising agency, Gotham, last week, after Leonard Short took the position of executive vice-president of brand marketing. Gotham had held the account for eight years.

Case has been forced from his position as chairman after doubts over his ability to run such a business. In a statement released by the company, Case said: "I would love to serve as chairman of this great company for many years to come."

His departure means that three top executives at the time of the merger have all relinquished their roles. Gerald Levin, who was chief executive of Time Warner at the time it decided to merge with AOL, resigned last May. Robert Pittman, an AOL executive who worked on the merger, also quit last year.

Case will remain with AOL Time Warner as a director and the co-chairman of the strategy committee.

Dick Parsons, CEO of AOL Time Warner, said: "I have valued partnering with Steve and am pleased he will continue to be active as a director even after he steps down as chairman in May. His extraordinary vision and unique experience will be invaluable and I look forward to working with him for years to come."

Case's statement in full reads: "As you might expect, this decision was personally very difficult for me, as I would love to serve as chairman of this great company for many years to come, and as an architect of the merger I have felt it was important that I stay the course as chairman and help get things on track. However, after careful consideration, I believe stepping down is in the best interest of the company, for three reasons.

"First, this company does not need distractions at this critical time, and given that some shareholders continue to focus their disappointment with the company's post-merger performance on me personally, I have concluded that we should take steps now to avoid the possibility of that effort hindering our ability to pull together as a team and focus fully on our businesses.

"Second, important progress has been made over the past year in building a new foundation for the future. This includes transitioning to the new leadership of Dick Parsons, Jeff Bewkes, and Don Logan; installing new management at AOL and developing a revitalisation plan that puts the focus squarely back on our members; and initiating a comprehensive companywide strategic review that led to the creation of the board's strategy committee, the identification of the core strategic initiatives we need to pursue, and the inclusion of specific programs in each of these areas in the budget and long-term plan. Given this progress and the fact that we're moving into more of an execution phase, this seems like an appropriate time for me to announce that I will step aside.

"Third, I have concluded that I can continue to make a significant contribution even after I step down as chairman. By remaining a director and continuing to co-chair the strategy committee, I believe I can help ensure that we maintain a balanced perspective, meeting current challenges with best-of-class execution, while using our unique assets to create new services and businesses that meet new consumer habits enabled by new technologies. Despite the current cynical view on Wall Street, there is growing evidence on Main Street that consumers increasingly desire and demand more choice, convenience, and control from the media they consume. I will continue to advocate a forward-looking view, so that when the environment and our performance improve, our company will be well positioned to benefit from these trends.

"The bottom line is this: I love the company, and will do whatever I can to make it successful. I believed in America Online when we built it; I believed in AOL Time Warner when we created it; and I continue to believe in the great potential of this company and its people. While my role will change, my enthusiasm for what this company can accomplish won't diminish."

If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the .