Archive of UserLand's first discussion group, started October 5, 1998.

Re: Is it time to short AOL?

Author:Jacob Levy
Posted:8/7/1999; 2:26:46 PM
Topic:Is it time to short AOL?
Msg #:9254 (In response to 9253)
Prev/Next:9253 / 9255

You took me a little too literally, I'm afraid :). Frankly I couldn't care less about the personal worth of AOL's COO -- sorry, guys! :) What I was asking is whether AOL is serving the best interests of their clients (both users and stock holders) and whether they have a strategy for sustaining their value proposition. IMHO so far negative on both questions, but I wanted to have a chance to be convinced otherwise. To use a Dave-Winer'ism, do they still retain the ability to zig when their opponent zags? I listed all their liabilities, could someone list their positive indicators?

There's another lesson to be learned here. If the AOL acquisition of Mirabilis hadnt happened, AOL might have avoided ending up square in Microsoft's sniper sights. Mirabilis all by itself was relatively easier for Microsoft to squash, but by being associated with AOL, all of AOLs assets automatically became a target. In other words, to win in IM, Microsoft has to damage not just Mirabilis but all other AOL assets as well. Every time some company makes an acquisition it better ask itself "is it worth my while ending up in the cross hairs of the current 800 pound gorilla just to own this property". Sad but it is the way of the Internet market nowadays. I don't think AOL shareholders are getting their money's worth when they spent that $180 million on Mirabilis.

There are responses to this message:

This page was archived on 6/13/2001; 4:51:46 PM.

© Copyright 1998-2001 UserLand Software, Inc.