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TMFEditorsDesk (< 20)

The End is Finally Near

Recs

5

July 28, 2009 – Comments (1) | RELATED TICKERS: TWX

The Engagement…

Remember back in 2000, when AOL’s acquisition of Time Warner (NYSE:TWX) seemed like the perfect fit – content provider extraordinaire meets massive online distributor. Remember when dial-up access to the internet seemed like a luxury? The good old days when this was, on the surface, supposed to be the tag-team duo that couldn’t be beat. When all was said and done, and the ink was dry, AOL had purchased the much larger Time Warner for a whopping $164 billion. A match made in heaven. 

And the Divorce…

Nine years later and it was the marriage that never was. Mixed management, bad supervision, culture clashing -- you name it. The two companies have wanted a spin-off for years. Google (Nasdaq:GOOG), who bought 5% of share of AOL in 2006 (for about $1 billion), recently announced it would sell its shares back to Time Warner. The sum? A measly $283 million, representing a decrease of over 70% in value over barely three years. 

 

The buyback sets the stage for an AOL spin-off that was announced this past May and is expected to occur later this year.  

 

Maybe the two companies can find solace in this gem of a quote by Ashton Kutcher:
“I hope Demi, Bruce and I can help other divorced people”.

 

Good luck AOL & Time Warner, and remember, if you need him, Ashton will be there.                                                                             

-Jordan

1 Comments – Post Your Own

#1) On July 28, 2009 at 12:12 PM, TMFEditorsDesk (< 20) wrote:

I couldn't find any other relevant Ashton Kutcher lines without making a tortured "Dude, Where's My Car" or "Punk'd" reference...here's the best I could find:

"I really believe in the Freudian idea that every man wants a woman who's like his mother”

-Anand

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