X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

<!–.tabletext {font-size: 12px;font-family: Arial, Helvetica, sans-serif;}.tinytext {font-size: 10px;font-family: Arial, Helvetica, sans-serif;}.border {color: #000000;border: 1px #999999 solid;font-size: 12px;font-family: Arial, Helvetica, sans-serif;}.johnathantext1 {font-size: 12px; font-weight: normal;font-family: Verdana, Arial, Helvetica, sans-serif;}.tabletext1 {font-size: 11px;font-family: Verdana, Arial, Helvetica, sans-serif;}.style1 {font-size: 12px; font-weight: normal; font-family: Verdana, Arial, Helvetica, sans-serif; color: #000000; }–>

Executive Watch
Perspective
Jonathan A. Schein - President & CEO - Real Estate Media - GlobeSt.com12/27/05: Online “media” gargantuan Google has just acquired 5% of AOL from TimeWarner for a mere $1 billion. Not bad for a days work, if you’re AOL. Or is it?  AOL has been struggling since the ill-fated AOL/TimeWarner merger back in 2000. Now, as web advertising is poised for major growth in the next decade, AOL has smartly positioned itself to take advantage. So–on paper–selling a small portion of its common stock to Google seems like a very good idea. As of now, Google is the “it” company of the media elite. Its revenues will never stop growing and neither will the value of its stock.  As a matter of fact, this affiliation can only increase value on both sides. If this sounds remotely familiar, you’re on the right track. In hindsight, the AOL/TimeWarner merger was a great idea at the time. It unfortunately occurred at a time when stocks were overvalued. Hopefully, the same won’t be said of Google. However, at some point, even for a media darling like Google, the music does stop playing.

PS.  Have a happy and healthy New Year!

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.