This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

7 Awful Acquisitions of Giant Companies

AOL buys Time Warner
Sale price: $165 billion
We all owe a debt of gratitude to America Online (AOL). In its day, it was how almost all Americans discovered the Internet.

And it was great and powerful in its day, until it got too big for its own good. Cue the .WAV file: "You've got hubris."

In what many consider to be the worst business deal of all time, AOL -- jacked up on the dot-com bubble like a wrestler on steroids -- brokered a $165 billion deal (or, in a lack of consensus with an intensity peculiar to this case, $284 billion or any of several other valuations) to buy the traditional media giant Time Warner (TWX).

Then a funny thing happened. People stopped using modems, discovered that the Web was for more than just arguing Kirk vs. Picard in a Star Trek chat room and new, better and cheaper ISPs emerged. Worst of all, the gold rush of the dot-com era imploded. The vision of new and old media joining forces to conquer the world proved a very expensive pipe dream.

The companies are now back to being separate entities, and AOL continues to seek its niche in a rapidly changing world. It still hasn't given up its media aspirations, though, and has gone on to buy sites such as the Huffington Post and build a national network of community news sites branded as Patch.

-- Written by Joe Mont in Boston.

>To contact the writer of this article, click here: Joe Mont.

>To follow the writer on Twitter, go to

>To submit a news tip, send an email to:


Get more stock ideas and investing advice on our sister site,
6 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AMZN $679.06 2.15%
DPS $91.64 2.11%
F $14.56 1.60%
GM $36.26 0.17%
KO $42.89 0.63%


Chart of I:DJI
DOW 17,888.35 +168.43 0.95%
S&P 500 2,102.63 +22.22 1.07%
NASDAQ 5,156.3060 +47.64 0.93%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs