04/17/2008 05:12 am ET Updated May 25, 2011

AOL's IM Threatened By New Facebook Chat

Don't expect AOL to be LOL over Facebook's new push into instant messaging.

Time Warner's struggling online unit could be the big loser if the surging social networking service's new chat feature, now in the midst of a slow rollout, takes off with its estimated 32 million US users, analysts warn.

"From an AOL perspective, we fear that Facebook users will become addicted to Facebook chat and begin to decrease their usage of AIM," Pali Capital analyst Richard Greenfield said in a note to investors yesterday.

Keep Reading....