MediaPost is reporting that J.P. Morgan has reduced its ad revenue forecast for AOL for the remainder of this year and next year due to slowing growth in the third-party and display ad business.
The article said that the report comes at a particularly bad time for AOL, now that parent company Time Warner is rumored to be nearing a sale of the unit to Yahoo, its arch-rival. The report could have implications for the value of AOL in the pending deal.
This is all despite the fact that Earthlink is interested in AOL’s money-losing dial-up business (what’s left of it). AOL has plenty of mobile properties in play, but again, it’s all dependent on what happens in the merger talks.