My Take on: Article – How I Knew AOL Time Warner Was Doomed (No, Really!)


The original article can be read at
http://blogs.hbr.org/martin/2010/11/how-i-knew-aol-time-warner.html

I would agree with the things that are discussed here. When we read the article in disjunction with any other case studies, it sounds reasonable. However, I feel, analyzing the things ten years later after the fact is easier than analyzing them before the fact. The actual takeover/merger has happened 10 years back and now a postmortem analysis may make us think that it was a fundamental strategic mistake. Generally there are more factors –like improper execution of the strategy, differences in organizational structure and culture – are in play than the author discussed –like competition, customer development etc. The reason might have been a simple fact that the two corporations were hugely different in their culture that they were unable to work in synergy; or it might have been a real strategic blunder as the author suggested.

These kinds of deals are not new and didn’t stop with AOL and Time Warner. There is a similar deal announced in this very year. I can see similar attempt in Comcast’s acquisition of majority stake of NBC Universal (51% of it). Comcast is a content distributor more like AOL and NBC Universal is the content producer, more like Time Warner. Are we really certain that Comcast is going to bite dust as a result of this acquisition? We never know. They might even be successful with this venture. Had Time Warner/AOL deal been a basic strategic blunder, Comcast would have definitely considered it before bidding for NBC Universal. After all we all learn from the past mistakes so as Comcast.

This comment can be found at http://blogs.hbr.org/martin/2010/11/how-i-knew-aol-time-warner.html#comment-94080351

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