AOL Time Warner's chairman has held onto his job following a board meeting in New York.

There had been speculation that Steve Case might have been ousted during the meeting.

"As we repeatedly said, Steve Case is the company's chairman and he will remain so," a company spokesperson said on Thursday evening.

Media reports and company watchers had suggested that Mr Case could be pushed out of his job because of the sharp decline in the company's value since the merger of America Online and Time Warner.

Shares rise in response

He was one of the architects of the colossal deal and was seen by some as being responsible for the demise of the combined company's share price.

Since the merger, in January of last year, shares in AOL Time Warner have slumped more than 70%.

The latest news from AOL Time Warner's boardroom is unlikely to lift shares, according to analysts.

If it is to see a recovery in its stock price it needs to deal with its broadband strategy, with regulatory investigations and it needs a rebound in internet advertising.

After the news that Mr Case was staying on, shares in AOL Time Warner rose in after-hours trade.