Case accepts blame for AOL-Time Warner debacle

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Good idea, bad culture.

Time Warner needed the internet. AOL needed broadband. Put the two together and make the effort to sell product, and the deal is a success. Reject the idea of selling on the internet and try to have inexperienced AOL people take charge of all sections of the company, and the deal is a failure.

The deal was a failure.

The prime reason is a refusal to change from the pre-existing model at Time Warner. Every p2p download of the company's music and movies is a concrete reproach to their attitudes.

The decline in the stock happened because of the loud public complaints and bad news. People believed the griping.
I've seen it happen at an organization that employed me years ago. A reasonable technological change happened over the objections of an important executive. He complained to the press, emphasized every piece of bad news, including exaggerating minor glitches. Sales were harmed, badly. The executive was fired. Not soon enough, maybe.

So, Time Warner got what it deserved because it insisted on disaster.

Posted by: Anton Philidor   Posted on: 01/13/05 You are currently: a Guest | Members login | Terms of Use

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