We all know that AOL has been contemplating an alliance with either Google or Microsoft for several months. We also know that AOL's parent, TimeWarner, has stated that AOL will not be sold nor would they consider selling control.

AOL is a solid asset. TimeWarner should be aggressive with its plans for the brand. I have suggested before and reiterate again that TW should be bold and fold its ISP business and allow all AOL email users to use their aol.com addresses on the aol.com Web site (for free).

If TimeWarner wants to be player in the Web search space, then they have to sacrifice the sure to die ISP business and take the bold long term strategy that I am suggesting. While painful to give up certain subscription revenue short term, making this move will give TimeWarner a more valuable Web presence that will be worth many more billions down the road. If they take this approach they can remain independent and reap the rewards of their monster traffic which will translate into greater stockholder value and a higher stock price.