AOL Time WarnerAOL Time Warner

Ken PeffersKen Peffers

UNLVUNLV

October 2004October 2004

Before the MergerBefore the Merger

That's "C" for convergence, the buzzword That's "C" for convergence, the buzzword of the year in the merger-happy days of of the year in the merger-happy days of 1999.1999.

"No company will be able to better "No company will be able to better capitalize on the convergence of capitalize on the convergence of entertainment, communications, and entertainment, communications, and commerce," gloated AOL CEO Steve Case, commerce," gloated AOL CEO Steve Case, who will serve as chairman of the who will serve as chairman of the conglomerate-to-be, AOL Time Warner. conglomerate-to-be, AOL Time Warner. ----Wired News Wired News Jan 10 2000Jan 10 2000

Before the MergerBefore the Merger

After surprising Wall Street at the start of the day, After surprising Wall Street at the start of the day, executives of America Online and Time Warner executives of America Online and Time Warner convened for a late-morning press conference convened for a late-morning press conference where they talked about how the where they talked about how the US$163 billion dealUS$163 billion deal combines the biggest combines the biggest subscriber bases in the Internet and subscriber bases in the Internet and entertainment industries. entertainment industries.

"This is the first time a major Internet company "This is the first time a major Internet company has combined with a major media company, and has combined with a major media company, and the possibilities are truly endless," Case said. the possibilities are truly endless," Case said. "The true value of this union lies not in what it will "The true value of this union lies not in what it will do today, but what it will do in the future.“do today, but what it will do in the future.“ ----Wired News Wired News Jan 10 2000Jan 10 2000

Claimed Tactical synergiesClaimed Tactical synergies

Use TW channels to promote AOL Use TW channels to promote AOL servicesservices

Shift TW marketing to AOL.Shift TW marketing to AOL.Shut down TW digital media unitShut down TW digital media unitEliminate redundancies in admin Eliminate redundancies in admin

servicesservicesCross selling to increase revenueCross selling to increase revenueOffer more content to broadband cable Offer more content to broadband cable

subscriber basesubscriber base

Strategic optionsStrategic options

Digitize TW libraries for delivery on Digitize TW libraries for delivery on AOL-TW broadbandAOL-TW broadband

Develop personalized services based Develop personalized services based on TW contenton TW content

Transformational Transformational opportunitiesopportunities

Convergence of TV, radio, print, Convergence of TV, radio, print, telephone and computer.telephone and computer.

Undefined revenue streamsUndefined revenue streams

AOL Tries to Stop the AOL Tries to Stop the BleedingBleeding

America Online released Thursday an America Online released Thursday an overhaul of its software that relies on overhaul of its software that relies on improved tools and content to keep current improved tools and content to keep current customers from defecting, even as the customers from defecting, even as the company's dialup business continues to company's dialup business continues to shrivel. shrivel.

The company that came to dominate the The company that came to dominate the dialup ISP business by giving neophytes an dialup ISP business by giving neophytes an easy on ramp lately has been bleeding easy on ramp lately has been bleeding subscribers as more and more of its subscribers as more and more of its customers grow comfortable with technology customers grow comfortable with technology and switch to other, often cheaper, and switch to other, often cheaper, alternatives, or to broadband.alternatives, or to broadband. --Wired News, 31 jul 2003--Wired News, 31 jul 2003

Share Price Since MergerShare Price Since Merger

Name Change for AOL Time Name Change for AOL Time Warner?Warner?

America Online is asking AOL Time Warner to drop "AOL" America Online is asking AOL Time Warner to drop "AOL" from its name, concerned that negative publicity about the from its name, concerned that negative publicity about the parent company is hurting the online service's efforts to parent company is hurting the online service's efforts to right itself, a person familiar with the situation said Monday. right itself, a person familiar with the situation said Monday.

America Online has been struggling to turn itself around as America Online has been struggling to turn itself around as dialup subscribers continue to abandon the service for dialup subscribers continue to abandon the service for faster ways to connect to the Internet. Revenues and faster ways to connect to the Internet. Revenues and earnings at AOL are falling, and subscriber losses have earnings at AOL are falling, and subscriber losses have increased faster than many analysts were expecting. increased faster than many analysts were expecting.

If the AOL name is dropped, it would represent the latest If the AOL name is dropped, it would represent the latest retreat from the lofty goals of the deal announced in retreat from the lofty goals of the deal announced in January 2000 under which AOL January 2000 under which AOL agreed to purchaseagreed to purchase Time Time Warner. Warner. ----Wired News, Wired News, Aug 11 2003Aug 11 2003

Name ChangeName Change

Effective October 16, 2003, AOL Effective October 16, 2003, AOL Time Warner Inc. changed its name Time Warner Inc. changed its name to Time Warner Inc. Also, the former to Time Warner Inc. Also, the former Time Warner Inc., its subsidiary, Time Warner Inc., its subsidiary, changed its name to Historic TW Inc.changed its name to Historic TW Inc.

Analysts View October 2003Analysts View October 2003

Stock Value to DateStock Value to Date

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