Case to Resign from AOL Time Warner

Steve Case will resign as chairman of the beleagured media and entertainment company in May, Reuters reports.

Steve Case announced on Sunday that he will step down from AOL Time Warner effective in May, Reuters reported.

Case, a pioneer of the online communications industry co-founded America Online Inc. in 1985, will remain at the company as a board member.

In 2001, AOL, along with countless other online companies, was riding high on the dot-com euphoria that defined much of the late 1990s. Record-breaking investment funding and skyrocketing market capitalizations were but two contributors to an atmosphere of almost limitless possibilities. That atmosphere caused many to not only dream beyond their limits, but to expect others to accept those same dreams.

In 2000, Case convinced Jerry Levin, Time Warner CEO, to sell. But as the dot-com era screeched to a stop, AOL was hit hard. Since January of 2001, the combined company has seen its share price plummet from the mid-$50s to a hovering pattern just above $10.

Stay tuned for a full story on the resignation plus reaction from the industry.