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

The original article can be read at

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.

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