AOL Time Warner Loses $50 Billion

Discussion in 'General Mac Discussion' started by sjs, Apr 24, 2002.

  1. sjs macrumors 6502

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    #1
    According to the financial press this a.m., AOL Time Warner will post the largest quarterly loss in US corporate history, $50,000,000,000.

    Without getting into the reasons for this, I just want to say I cannot think of any company more deserving of this. AOL's product stinks and Time Warner's products have contributed to the degradation of American culture, plus they are run by a bunch of liberal elitists.

    Consider this thread a target-rich environment, Have fun.
     
  2. D0ct0rteeth macrumors 65816

    D0ct0rteeth

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    #2
    gee..

    i didnt know that those free AOL CD's i get in the mail cost so much to make :)

    C-
     
  3. Mr. Anderson Moderator emeritus

    Mr. Anderson

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    #3
    Re: AOL Time Warner Loses $50 Billion

    Here in the land of AOL (they're out in VA near Dulles Airport) all sorts of things have been in the news lately. They've been having subscriber issues, I can't imagine why...:p

    You have a link to that? I haven't been able to find anything online.
     
  4. Hemingray macrumors 68030

    Hemingray

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    Ha ha haaa!
    #4
    Re: AOL Time Warner Loses $50 Billion

    Ohhh, that just made my morning. :)
     
  5. Hemingray macrumors 68030

    Hemingray

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    #5
    You mean those CDs I'd make into drink coasters and frisbees? :D
     
  6. sjs thread starter macrumors 6502

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    #6
    Story can be found at latimes.com/business or drudgereport.com
     
  7. Mr. Anderson Moderator emeritus

    Mr. Anderson

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    #7
    Thanks. Could you post the link directly next time though, its much easier than having to search for it. Just copy the address and paste it into the post.

    http://latimes.com/business/la-042402losses.story

    Great story, this is crazy!

    With a quarterly loss expected to exceed $50 billion, in one fell swoop the world's biggest media company will lose more than the annual gross domestic product of Ecuador, Croatia, Uruguay, Kenya or Bulgaria.
     
  8. sjs thread starter macrumors 6502

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    #8
    Thanks, I've had trouble figuring out how to do it, but copy and paste is a no-brainer.

    Not that Apple would ever do it, but can you imagine how different and better their ISP user experience would be than AOL's?
     
  9. Mr. Anderson Moderator emeritus

    Mr. Anderson

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    #9
    iDisk is a great way to go for Apple, leave the ISP to the cable and dsl providers. That's whats hurting AOL, they just can't compete with the faster services. Even though it cost more (but not by much) and isn't available everywhere, the faster services are the future and will eventually replace most of the dialups.

    I'm not sorry to see AOL in trouble, I've despised their product for quite some time. I remember having to save images on webpages specifically to be compatible with AOL because they wouldn't display correctly if you had a preview thumbnail in the jpeg. That screwed me a couple times on some sites and I haven't forgiven them since.
     
  10. sjs thread starter macrumors 6502

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    #10
    BTW, I am not sure of the details of why the $50 billion loss, but I am sure it has something to do with writing down the loss from the incredibly stupid puchase of TimeWarner. Total market value for the two companies has declined from about $280 billion to $90 billion. What that means is that shareholders just like you or me have lost $200 billion out of our retirement or investment accounts.

    When you buy a company for more than they are worth, the excess is called "goodwill" from an accounting standpoint. That is probably what they are now writing off.

    Remember, AOL is the stupid company that bought Netscape for about $10 billion and then made IE their default browser.

    And don't get me started on TimeWarner...
     
  11. Macmaniac macrumors 68040

    Macmaniac

    #11
    AOL Time Warner

    Thats alot of money, does anyone remember AOL on floppies? People used to make pyramids out of them, guess it caught up to them!
     
  12. D0ct0rteeth macrumors 65816

    D0ct0rteeth

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    #12
    thats classic.... ROTFLMAO

    C-
     
  13. j763 macrumors 6502a

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    #13
    Re: AOL Time Warner Loses $50 Billion

    *Cough* MS *Cough*
     
  14. Hemingray macrumors 68030

    Hemingray

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    #14
    Re: Re: AOL Time Warner Loses $50 Billion

    The difference there is it wouldn't even put a dent in 'em.
     
  15. Mr. Anderson Moderator emeritus

    Mr. Anderson

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    #15
    Re: Re: Re: AOL Time Warner Loses $50 Billion

    Who cares if it would or not? It would cause mass hysteria in the mac world, dancing in the streets, cats and dogs sleeping together.....

    One evil empire at a time is all it will take.:D
     
  16. Hemingray macrumors 68030

    Hemingray

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    #16
    Man, and I thought the courts neutering M$ was something to be happy about... :rolleyes:
     
  17. Durandal7 macrumors 68040

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    #17
    I used AOL until TW bought them out. I consider this an ample punishment for embedding themselves into my iMac.
     
  18. sjs thread starter macrumors 6502

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    #18
    quote:
    --------------------------------------------------------------------------------
    Originally posted by sjs
    I just want to say I cannot think of any company more deserving of this.
    --------------------------------------------------------------------------------



    *Cough* MS *Cough*

    _____________________________________

    I stand corrected.
     
  19. sjs thread starter macrumors 6502

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    #19
    It gets better! $54 billion loss!

    Here is the latest, quoted from MSNBC (sorry):
    ______________________________________

    AOL Time Warner posts huge loss

    Media, Internet firm takes $54 billion goodwill charge

    BREAKING NEWS


    NEW YORK, April 24 — AOL Time Warner Inc. , the world’s largest Internet and media company, Wednesday posted a massive net loss after taking the largest charge in corporate history.

    THE COMPANY POSTED a first quarter net loss of $54.2 billion, or $12.25 a basic share — among the largest in corporate history — compared with a net loss of $1.37 billion, or 31 cents a share, a year earlier.
    It took a previously announced $54 billion charge to write off goodwill in line with accounting changes to reflect the sharp decline in the value of its $106.2 billion purchase of Time Warner in 2000.
    _______________________________________________

    http://msnbc.com/news/743165.asp
     
  20. sjs thread starter macrumors 6502

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    #20
    Who do I root for? Netscape (AOL) suing MS

    This from BetterManagement.com, from the Wharton School:

    "It’s already shaping up to be quite a year for AOL Time Warner. Last week, Netscape, the Web browsing company now owned by AOL Time Warner, filed suit against Microsoft claiming antitrust violations resulting from actions by the software giant against Netscape’s Internet browser.
    Consider it another round in the continuing battle of the titans. AOL, which bought Netscape in 1999 for $10 billion, said it filed suit "to help restore competition to the computer desktop." Microsoft, in response, accused its competitor of "squandering its asset" and now seeking to gain in the courts what it lost in the marketplace. AOL Time Warner, Microsoft says, "wants to blame Microsoft for their own mismanagement."

    http://www.bettermanagement.com/library/Library.aspx?libraryid=2689&A=8
     
  21. kevine macrumors newbie

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    #21
    AOL versus eWorld or AppleLink

    See the history books for eWorld or AppleLink. Also very interesting stories on the relationship between AOL and Apple regarding licensing.

    I think AOL gets a bad rap. Rememer when it started (as a Mac only thing), most people weren't online and those that were had services that really sucked. AOL quickly not only overtook Prodigy and Compuserve but ended up taking over Compuserve (as well as other properties).

    In the early days of the Web, AOL wasn't the real Internet, but for many it was good enough...especially compared to how difficult it was to get online with the ISPs at the time...this was more a fault of Mac and Windows operating systems at the time.

    Just as it became easier to get online with other ISPs, AOL became much more robust. Many of the arguments that I've heard against AOL has to do with things that haven't been true for at least 5-10 years.

    The fact is AOL is not for everyone, but for a huge number of people acrosss the country, AOL meets their needs and does it at a relatively low price with tremendous ease of use.

    AOLs current situation isn't based on the quality of their online service, but rather the affect of the industry as a whole. AOL was bringing in a ton of cash through advertising, promotion, lead generation and syndication. The dot com crash as destroyed much of this revenue. This all combined when they took over the mega-media corporation Time Warner. Also not to be overlooked is the fact that they took over many other properties (such as Netscape) at the same time.

    Now I'm not saying AOLs situation is based solely on external forces. Their management, or should I say mismanagement, of some of their properties has cost them dearly. I can't imagine anyone doing a worse job with Netscape. It really makes me wonder if someone at AOL got bribed by Microsoft.

    AOL's problems have much to do with the left hand not knowing what the right hand is doing. Example: Left hand thinks they can buy Netscape, integrate the browser, increase daily eyeballs by huge levels, absorb new ad and syndication partners, gain access to enterprise markets, and other benefits....the problem is that the right hand finds out after the purchase that oooops if AOL integrates the browser, we can't put our client on shipping copies of Windows.

    Or:

    Left hand sees all kinds of benefits to taking over Time Warner. The right hand has a problem with this because while Time Warner has some great content, AOL makes a ton of money by offering syndicated content on its service...including money that was coming in from Time Warner itself. Oh, and then there's this 3rd hand which needs to come up with $10 billion to buy out a share of a cable partnership that it doesn't even want anyway.

    These are all some bitter pills. AOL will recover from this mess if it continues to recognize the mistakes it made and takes action to deal with the problems...as they seem to be now doing with Netscape and other situations.
     
  22. sjs thread starter macrumors 6502

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    #22
    I will bet that 5-10 years from now, AOL the ISP no longer exists in any recognizable form.

    1. 5-10 years is the period of time needed for most of the rest of the country to get on cable, satellite or some other form of broadband.
    2. I don't see AOL figuring out a way to come anywhere near matching their current phone line penetration in cable, etc.
    3. Eventually everyone will figure out that the role of an ISP is to provide a way to download data to their computer, NOT provide an interface, sell them products or in any way govern their online experience.

    AOL is to the future of ISPs what buggy whips were to cars: irrelevant.
     
  23. Mr. Anderson Moderator emeritus

    Mr. Anderson

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    #23
    I don't know. They're probably scrambling right now trying to figure out where to go from here. My guess is that they might evolve into something else - in a aspect of TimeWarner. ISPs will be the cable/satellite/wireless systems in the near future. And it might take more than 10 years to complete the change. If you have a laptop and you're on travel, its nice to plug the machine into the phone jack and connect to the internet. Until a suitable replacement is provided, this won't change anytime soon.
     
  24. sjs thread starter macrumors 6502

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    #24
    Agreed, but local ISPs can provide that. Especially ISPs that ONLY provide the phoneline, not an interface, shopping coupons, etc, that people will realize they don't want or need from an internet provider.
     

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