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Technology Stocks : America On-Line (AOL)

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To: puborectalis who wrote (41288)8/8/2002 8:01:52 AM
From: JakeStraw  Read Replies (1) of 41369
 
The dumbest deal ever?

AOL Time Warner shares have sunk more than 67 percent this year. Hope for a near-term revival has all but died. Right about now, the folks responsible for crafting the once-blockbuster merger between America Online and Time Warner aren't winning any popularity contests with shareholders.

As the bad-news drumbeat echos louder--shareholder lawsuits, government investigations and executive turmoil--isn't it about time to write this deal off as one of the dumbest in the history of the technology industry? It's tempting, but a tad too soon.

Media companies--especially those tightly tied to the Internet-- aren't especially popular. Yet some perspective is in order. This isn't the first time America Online's been given up for dead. Pulled from one side, tugged at from another, this is a company with a terrible identity crisis. John O'Brien, a former vice president of business development at AOL, has it right in his recent column. He says fixing the problem is not exactly impossible; the real question is whether management has learned the new rules of the game. clickthru.online.com
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