Slashdot Mirror

← Back to Stories (view on slashdot.org)

Time Warner Confirms Split With AOL

Posted by Soulskill on from the no-plans-for-coaster-hall-of-fame dept.

ausekilis writes "Many outlets are reporting that Time Warner has confirmed plans to spin off AOL. All that's left to deal with are a few financial hurdles, such as buying out Google's 5% stake in AOL. The interesting part of the story is that both AOL's CEO and Time Warner's CEO said effectively the same thing, that AOL will be better off as an independent unit, as opposed to 'a cog in the Time Warner wheel.' Interesting to note that when they originally merged, the idea was for AOL to be a one-stop shop for all your internet goods. Makes you wonder what would have happened if Time Warner had invested in AOL as an exclusive media outlet for movies, TV, music, etc. Perhaps AOL would have regained some speed and become the prominent household name it once was, instead of being that company who sent us all the free coasters."

1 of 94 comments (clear)

  1. Ted Turner: The merger was "better than sex". by Futurepower(R) · · Score: 5, Interesting

    "Do we really need those all-inclusive portals anymore?"

    There was never a need for all-inclusive portals after the arrival of the internet. AOL was trying to keep less-knowledgeable people inside its own sites, and away from the internet, so it could make more money from its ads. For years, and I suppose even now, an AOL email address meant that the owner of the address didn't have any technically knowledgeable friends.

    The 88 BILLION dollars lost when Time Warner bought AOL has been considered to be the worst business decision of all time. Maybe the French selling the Louisiana Purchase to the U.S. government was a worse decision. But, if we include decisions made by government, then even the U.S. invading Iraq lost more money.

    At the time, even people with little technical knowledge knew that AOL was not a good company to buy.

    Time Warner's CEO, Gerald M. Levin, who made the decision, called himself an "imperial CEO". He made huge amounts of money, and didn't seem to care that he caused enormous troubles for his company, and for all its employees that owned stock.

    Just before the merger, Ted Turner called the merger "better than sex". The problem continues, of course. People with no technical knowledge assume that, if they don't know something, there is nothing to know. Technically knowledgeable people get amazingly little respect.