AOL A DRAG ON TIME/WARNER:
By Ed Driscoll · March 25, 2002 10:07 AM ·
AOL A DRAG ON TIME/WARNER: The New York Daily News Online is reporting that AOL has been a significant drag on the performance of Time/Warner's stock price.
In one more stroke of bad news for the world's largest Internet and media empire, last week Lehman Bros. analyst Holly Becker shaved down her earnings estimates, hammering AOL Time Warner's already battered shares. The stock, which has underperformed peers like Viacom and Fox, closed Friday at $24.50, down 57% from its high of $56.60 last May.While in theory, (how does Matt Drudge type it out?) AOLTIMEWARNERTURNERBROADCASTINGCOMPUSERVE (and whatever else is in there) makes sense, when it was first announced, it sounded like one of those Beatrice-type companies that Michael Milken was so successful at busting up and getting more money for their original components than the combined enterprise was worth. Synergy doesn't always work, and it looks like this one is failing badly.
Now pundits are saying Time Warner shareholders would have been far better off if they hadn't agreed to sell to AOL. They're noting that, in hindsight, AOL chief Steve Case was the shrewdest guy at the podium back in January 2000 when he shook hands on the deal with Time Warner's Levin, just months before the Internet bust.
Since 2002, News, Technology and Pop Culture, 24 Hours a Day, Live and in Stereo!
(And every Saturday on Sirius XM Satellite Radio.)
What They're Saying
"I'm a big fan of EdDriscoll.com, a fine blog site that MusicTAP recommends. We encourage you to stop in and keep posted on the changing landscape of politics. Wired magazine has noted that Blog sites such as Ed Driscoll is doing more than any medium to educate and inform the netizens of the world."--Matt Rowe, MusicTAP
Support the Site
Site design by
Copyright © 2002-2008 Edward B. Driscoll, Jr. All Rights Reserved