Time Warner’s Board Hears Plan to Save AOL

Time Warner Inc.’s board of directors met to hear a proposal to save its AOL online division and approved a plan to raise its cash dividend 10%, or half a penny.

Chief Operating Officer Jeffrey Bewkes presented a new strategy for AOL, but a decision has not been reached, said a person familiar with the proceedings.

New York-based Time Warner announced a higher cash dividend in a statement after the board meeting but made no mention of AOL.

Sources have said AOL was considering offering its e-mail and other Web services free as a way to retain subscribers it would have otherwise lost to rivals. The plan is considered risky as AOL depends on subscriptions for 80% of sales.