AOL’s continues to build out advertising unit announcing two more purchases recently. Its advertising unit beat expectations when earnings were reported while operating income for its subscriber unit dropped 70% due to the sale of its internet access business in Great Britain and France.

Last week Time Warner’s new CEO Jeff Bewkes, announced the company is looking at possibly shedding the traditional dial-up business, the company’s cable unit and possibly spinning off its advertising business.

The company is organizing all their advertising divisions into a single unit to better compete with Google, Microsoft, Yahoo and ad networks such as Facebook and MySpace. The former CEO of TACODA, Curt Viebranz, will head the division.

Here is a list of their advertising acquisitions to date:

* Feb 2008, Buy.At, online affiliate marketing network
* Feb 2008, Goowy, widget creator
* July 2007, TACODA, behavioral targeting ad network
* May 2007, ADTECH AG, ad-serving and e-mail marketing network
* May 2007, Third Screen Media, mobile ad serving
* May 2006, LightningCast, streaming video/audio ad serving
* June 2004, Advertising.com, direct-response network

Potential suitors for the dial-up unit could be AT&T and Comcast for the cable business which includes TNT, TBS and others. No ideas what happens to CNN. Possibly it gets folded into its new advertising unit as a publisher.Bewkes, said that Microsoft’s Yahoo bid “demonstrates the value” of AOL, since Yahoo is a competitor of AOL.