The deal was formalised today (9 December) in New York. Under the terms of the deal, qualifying shareholders will receive one AOL share for each 11 Time Warner they own.
The two companies formally merged in 2001 in a $160bn (£98bn) deal, widely reported as the “deal of the century”.
However, the deal was soon overshadowed by the launch of broadband and increased competition in the internet marketplace. AOL sold its UK internet business to Carphone Warehouse in 2006 for around £370m.
AOL Advertising is now refocusing its advertising efforts on publishing more original content and offering more premium display and videos around it, following its rebrand from Platform-A in July. The business says online ads will be a core component of its new business.
Last month, AOL unveiled a new logo in a bid to revive its fortunes in advance of its spinoff from Time Warner.