Once the focal point of social networking and a former stepchild of Time Warner, AOL may be writing its final chapter as a viable business. Spun off buy Time Warner in the fourth quarter of last year and declaring it's IPO status the same day, AOL (NYSE) is facing a tenuous future.
The chart that follows illustrates its revenue declines over the past few years. As subscribers leave (who needs a middleman to connect with the net?), ad dollars are sure to decline as well.
The chart that follows illustrates its revenue declines over the past few years. As subscribers leave (who needs a middleman to connect with the net?), ad dollars are sure to decline as well.
Click on the chart to enlarge.
What went wrong?
Is Time Warner to blame? Since its merger with the company in 2001, a decline of the value of the company was set in motion. Controversy concerning operations, billing disputes, account cancellation "scams" and subsequent investigations did not help its cause.
AOL was becoming a company in search of a purpose.
AOL is a matured company in a failed marriage that has not been able to keep pace with the shifting dynamics of a digital landscape. Its management is likely to blame, taking their eyes off the real prize ..... people.
Building a huge following with little regard for the followers (are you listening Facebook?) is a perfect recipe for failure.
It was fun while it lasted ....
AOL's stock graph since its IPO follows ....
Is Time Warner to blame? Since its merger with the company in 2001, a decline of the value of the company was set in motion. Controversy concerning operations, billing disputes, account cancellation "scams" and subsequent investigations did not help its cause.
AOL was becoming a company in search of a purpose.
AOL is a matured company in a failed marriage that has not been able to keep pace with the shifting dynamics of a digital landscape. Its management is likely to blame, taking their eyes off the real prize ..... people.
Building a huge following with little regard for the followers (are you listening Facebook?) is a perfect recipe for failure.
It was fun while it lasted ....
AOL's stock graph since its IPO follows ....
Click image to enlarge
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