After 9 Years, Turned Out I Am Not An Idiot After All :-) AOL and Time Warner are Divorced Now

The Virginia based AOL now worth $2.5 B down from their $100 B valuation prior to their 2001 merger with Time Warner. AOL will start a new life starting tomorrow completely independent from their sugar daddy, Time Warner. Their stock will start trading tomorrow on the New York Stock Exchange. The sugar daddies ended up having one share of AOL for each of their 11 shares after the market closed today. I wonder what’s going to happen to them tomorrow after market closes. I hope they go higher. It will be good for us Washingtonians – the more successful companies around D.C, the better for all of us.

I remember their merger from my Web 1.0 days when I was running my first internet company, telezoo.com:

When I heard about their deal, I just could not comprehend why the analysts and other old farts were so optimistic about it. None of my numbers added up. I just figured I was new to world of business. So, I told myself they knew what they were doing. Nearly, nine years gone, they are divorce now, and the same old farts who are older now are saying the merger was one of the most disastrous of all time. Well, that makes me feel better. I am now convinced I am not an idiot. In fact, I was right all along.

Just curious how a company of $2.5 B with over 90%of their dial-up Internet business gone, how do they plan to compete with a $186 B Google (NASD: GOOG) and $21 B Yahoo (NASD: YHOO). AOL has to reinvent themselves in such competitive space. I hear they plan to lay off 2,500 – 3,000 people.

Scott Rosenberg of those days with Salon.com was the closest who shared my view:

I wish them luck. A LOT OF LUCK!