The company's No. 2 executive, Robert Pittman, also resigned as part of the shake-up, just months after he was sent to revive AOL. Shares of the company have dropped about 65 percent this year, partly fueled by concerns about flagging subscriber growth and a slowdown in ad revenue at the AOL unit. AOL Time Warner said its earnings before interest, taxes, depreciation and amortization, a common measure of cash flow, grew 2 percent to $2.5 billion from a year earlier. The AOL service added 492,000 net new subscribers in the quarter, compared to analysts' expectations for up to 1 million net new subscribers. The company said the subscriber growth included 477,000 in the United States and 78,000 in Europe. Strength at the company's cable systems and its film unit, driven by the home video release of Harry Potter and the Sorcerer's Stone and film hits like Insomnia, helped offset some of the weakness from AOL. Reuters contributed to this report.