Skip to main content

AOL at Twenty Starts Second Act

The online service helped trigger the original Internet boom, and a new approach aims to do it all over again -- "There are no second acts in American lives," F. Scott Fitzgerald once wrote, but even he would have to marvel at the curtain raiser on America Online's second act. Founded in 1985, AOL was a pioneer of the Internet, vaulting to spectacular heights only to plummet to an equally astounding low

Twenty years later, the firm has reinvented itself as an Internet portal and is reaping the rewards of its brand name, a dual revenue stream and two decades of experience. The new package is compelling enough to have attracted serious interest from third-party investors. During the past few months, AOL has been sequestered in backroom meetings trying to hammer out a deal with one of several suitors, among which the front-runners seem to be Google and Microsoft.

Interestingly, the one-time black sheep of the Time Warner family might just be the little engine that could reverse the sagging fortunes of its corporate parent.

As a dial-up Internet service provider, AOL by the late 1990s grew to include more than 25 million paying subscribers, making the company the largest in the business. Most were mainstream consumers who enjoyed the exclusivity of AOL's members-only environment during the Internet's early days. AOL was not like Web-surfing; it was a destination that filtered, packaged and edited its content and one where users built a strong sense of community through chat rooms and newsgroups.

Popular posts from this blog

Chinese AI Models Cut U.S. Lab Share in Half

The trillion-dollar cloud hyperscaler build-out was underwritten by a simple bet: that enterprises would keep paying a premium for Frontier AI compute indefinitely. The latest market data suggests that AI infrastructure investment is being tested faster than anyone budgeted for, and the shift is not a forecast. It already happened. The Market Flipped in a Year Juniper Research reports that American frontier labs -- Google, OpenAI, and Anthropic among them -- previously accounted for roughly 70 percent of the work run through OpenRouter; the open marketplace where developers choose between competing models. Today that share has fallen to around 30 percent. Why? Chinese models are now running for up to 90 percent less than their U.S. counterparts on the OpenRouter platform. It's not a gradual erosion. It is a market share collapse, and it happened inside a single budget cycle. Cheap Wins Volume, Quality Still Commands a Premium The economic picture is not uniformly bearish for Wester...