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The demise of AOL to a merger with Time Warner in 2000, but there are a few other factors worth mentioning too.Let’s take a look at these factors now.Broadband internetAOL had mastered the art of attracting and then monetizing dial-up subscribers but was unprepared for the boom in popularity of broadband internet.The reasons for this are complex and unclear, especially when one considers that the transition from dial-up to broadband took years. Some argue that AOL believed consumers wouldn’t pay more money just to receive faster speeds. Others suggest the company was a victim of the sunk cost fallacy. In other words, it had invested so much in dial-up infrastructure that executives were unwilling to consider a better alternative.Some still believe it was the relationship with Time Warner which is discussed in the next section.Time Warner mergerIn the largest merger in United States history, AOL acquired Time Warner for $111 billion in 2000. The result was a $360 billion multimedia conglomerate comprised of Time Warner’s vast media empire and AOL’s 30 million dial-up Internet subscribers.Unfortunately, the merger occurred just three months before the dot-com bubble burst and the economy fell into a recession. Moreover, the relationship between Time Warner and AOL was often acrimonious. This hindered AOL’s ability to make serious inroads into broadband, which cable companies largely controlled. In the years following the merger, the dot-com recession and a lack of broadband integration lead to a serious decline in AOL subscribers.In 2003, AOL Time Warner posted a $100 billion loss – the largest in U.S. corporate history.American Online retiredDuring the merger above in 2000, AOL executives believed they were taking over Time Warner as part of a stronger company.However, the inability of AOL to move into broadband made it the weaker of the two companies. As a result, AOL executives were ousted from power, and the full name of “America Online” was retired in 2006. AOL then became a small subdivision of AOL Time Warner, itself reverting to the original name of Time Warner. Instant messenger and AOL mail – once the company’s flagship products – were given away for free.Spin-off company and rebirthAfter eight years in partnership, Time Warner spun out AOL as a separate company in 2008. Verizon then acquired AOL in 2015 and announced it would sell the company to Apollo for $5 billion in May 2021.Though a shadow of its former self, AOL continues to operate today with a portfolio of content sites, including Huffington Post, TechCrunch, Engadget, and Autoblog. It also owns mobile, desktop, and television advertising services.The company still sells dial-up internet access to a few thousand customers, with 1.5 million more paying for AOL’s technical support and identity theft protection plan known as AOL Advantage. Key takeaways:AOL is a web portal and online service provider founded in 1983 by Marc Seriff, Steve Case, Jim Kimsey, and William von Meister. The company enjoyed short-lived success during the internet boom of the 1990s but declined after failing to adapt to the emergence of broadband.On

Line at the exchange. Page 23 C h a p t e r 3 U s i n g W HUTTLE... Page 25 HUTTLE After you have connected your WebShuttle II, installed the software and configured your computer, you can use your WebShuttle II to surf the Internet and access many other services on the Internet. There is only one piece of information missing to start surfing: through which Internet service provider or online service to connect to the Internet. Page 26: Accessing The Internet Through Aol AOL software. You find it on the AOL CD-ROM. 3.1.1 Setting up a COM port Despite the fact that the WebShuttle II is an ISDN adapter, you have to configure it as a modem to make the AOL software work with it. Page 27: Setting Up Aol AOL software. 3.1.2 Setting up AOL To set up the AOL software to use WebShuttle II follow these steps: 1. Install the AOL software from the AOL CD-ROM. After installing the software you’ll need to restart your computer. Page 28 Accessing the Internet through AOL If you click No you are guided through a series of set-up dialogues: 4. You may enter here whether you have to use a prefix for getting an out- side line. A comma after the digit tells the modem to wait for a small amount of time. Page 29 Using W HUTTLE 64,000 bps. You normally do not need to use the Select Modem option, since the default “Hayes-compatible” will do. 6. Click OK. An info screen is shown. 7. Click Continue. Another screenful of information in preparation of the logon pro- cess: 8. Page 30 Accessing the Internet through AOL Choose your local access number or the local area code, which automatically defines an access number. 9. Click OK. Your choice is evaluated and the complete access number, which will be dialed is shown. 10. Click Sign on to AOL. Page 31: Connecting And Disconnecting • Your user name (also called the “PPP user name, Login name”). • The matching password. • The ISDN dial-in number. To configure your WebShuttle II follow these steps: 1. Open Dial-Up Networking in My Computer. Page 32 Accessing the Internet through a service provider 2. Open Make New Connection. If you open Dial-Up Networking the first time, Windows auto- matically opens Make New Connection for you. 3. Enter a name, i.e. “My Internet Access.”

And ImpactAOL’s legacy lies in its role as one of the pioneers of the internet era, introducing millions of people to online communication and digital media. While the company’s dial-up internet business has declined, its influence on the digital landscape and transition into digital media and advertising continue to leave a lasting impact on the industry. Despite facing challenges and corporate changes, AOL remains a recognizable brand with a portfolio of content sites, media brands, and advertising services.Founding and Early Success: AOL was founded in 1983 and became one of the largest media companies of the early internet, dominating email, internet connectivity, online news, and chat. At its peak, it had a market capitalization exceeding $200 billion.Failure to Adapt to Broadband: AOL excelled in attracting and monetizing dial-up subscribers but failed to anticipate the rise of broadband internet. The company was unprepared for the transition and didn’t make serious inroads into broadband, losing subscribers as a result.Merger with Time Warner: In 2000, AOL acquired Time Warner for $111 billion in what became the largest merger in U.S. history. The merger was met with challenges, including the dot-com bubble burst, economic recession, and a lack of integration between the two companies.American Online Retired: After the merger, AOL executives were ousted from power, and the full name “America Online” was retired in 2006. The company’s flagship products, Instant Messenger and AOL Mail, were offered for free.Spin-off and Rebirth: Time Warner spun out AOL as a separate company in 2008. Verizon acquired AOL in 2015, and in 2021, it was sold to Apollo. AOL continues to operate with a portfolio of content sites, media brands, and advertising services. It still offers dial-up internet access to a limited number of customers.Legacy: AOL’s journey represents a cautionary tale of a once-dominant internet giant that failed to adapt to technological changes and market shifts. Despite its decline, AOL continues to exist as a smaller entity with a focus on media, content, and advertising services.Read Next: Google Business Model, How Does Google Make MoneyMain Free Guides:Business ModelsBusiness StrategyBusiness DevelopmentDigital Business ModelsDistribution ChannelsMarketing StrategyPlatform Business ModelsRevenue ModelsTech Business ModelsBlockchain Business Models Framework

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