AOL Time Warner has found a new boss for its internet division.

The company has confirmed that Jon Miller, a top executive from USA Interactive, will start immediately as chairman and chief executive of AOL.

He replaces Robert Pittman, the parent company's chief operating officer, who resigned from his position at the top of AOL - one of the world's biggest internet service providers - in July.

It is a better turn of events given the arrogance we saw at AOL

Paul Kim, analyst

In recent months, several senior executives have left the company as it has come under great pressure to justify the benefits of the merger to shareholders as share prices have plunged.

The internet division has faced its own particular bag of problems.

Mr Miller's challenge will be to steer the internet company to continued profit through a sea of declining advertisement revenues.

At the same time, AOL faces an inquiry by the Securities and Exchange Commission (SEC) into its accounting practices.

Mr Miller's appointment has met with a subdued reaction from investors and analysts.

On Tuesday, AOL Time Warner's share prices were hovering near four-year lows, 13 cents lower at $9.82.

New hand at the helm

His appointment - unusual in that is he an outsider - has led to speculation he may instigate management change at the company.

"I think it is a smart choice, but I don't know how much a CEO can do, given the troubles at AOL," Paul Kim, analyst at Kaufman Bros. said.

"It is a better turn of events given the arrogance we saw at AOL. There is a return to the roots of AOL, the basic service with marketing and some add-ons."

Mr Miller's background includes stints at Viacom, the National Basketball Association and PBS as well as his time as a senior executive at USA Interactive.