Legacy Business Wars Presents: The AOL-Time Warner Disaster
Aug 11, 2025
Dive into the dramatic saga of the AOL-Time Warner merger, once hailed as a revolutionary pact. Discover how rising stock prices morphed into investor anxiety, setting the stage for chaos. Uncover the desperate tactics AOL employed to stabilize its fortunes amidst mounting pressures and regulatory challenges. This tale reveals not just corporate ambition, but the unforeseen pitfalls of the business world.
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Timing The Deal Around A Stock Peak
- AOL pursued the Time Warner deal when its stock peaked to maximize exchange value.
- The tech stock downturn made the exchange suddenly risky and imperiled the merger.
Stock Price As Negotiation Currency
- In stock-for-stock deals, share price becomes negotiation ammo, not just valuation.
- Steve Case tried to prop AOL's price to preserve bargaining power for the merger.
Quarter-End Pressure Sparks Improvisation
- Steve Case pushed AOL's ad-sales team to hit quarter targets to prevent merger fallout.
- With three days left, the team improvised deals to fill a revenue hole.