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Just four months after the high-profile launch of its in-house entertainment destination, America Online has slashed the unit’s staff and signed a content deal with an outside source.
E! Online and America Online have formed a distribution agreement for E! Online to appear as an anchor tenant on the main screen of AOL’s entertainment channel. The arrangement coincides with the layoff of 40 staffers at AOL’s Entertainment Asylum–about half of the unit’s employees–at a time when the online service’s content partners have publicly complained of abandonment.
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