How Much Debt Will AOL Take On?

AOL is a symbol of the craziness of the dot-com era. Yet, at the end of the day, the site still has a lot of scale In fact, it generates huge amounts of cash flows.

Considering this, it looks like AOL will take on debt as it preps for its spinoff from Time Warner (NYSE: TWX). This is according to a report in Bloomberg.com.

How much debt? Actually, it could be as much as $1.5 billion.

But, of course, this is mostly speculation. We won’t know more until AOL files the necessary papers with the SEC, which could take a couple months or so.