Agreeing to be acquired by AOL is the latest in a series of idiotic mistakes made by Time Warner. Suspect that the reason was due to the change of corporate ownership clause in Levin's contract.
Anyway, AOL has from the start been considered worth more than it was. Never liked it.
Time Inc made mostly illogical decisions up until Henry Luce was no longer around. Some of its ill fated acquisitions included Temple Industries, Inland, and Warner. It has been willing to make equal illogical decisions to get rid of things too. The latest is the plan to get rid of Time Warner Cable, which the company invested billions to acquire the systems and billions to upgrade TWC into one of the most advanced. Now it is getting rid of it to meet the short term interest of short term stockholders.