Why Did the AOL-Time Warner Merger Fail?

did-aol-time-warner-merger-fail Credit: Spencer Platt / Staff/Getty Images News/Getty Images

The America Online and Time Warner in early 2000 merger proved to be a failure for several reasons. Among other things, AOL was never able to effectively adapt the new Time Warner offerings to its existing base of Internet users.

Time Warner was able to bring a number of recognized media brands and services to the deal, including magazines, music, movie and television businesses. The merger, however, was ultimately unable to live up to the expectations of either company. The failed merger resulted in a huge net loss for both companies, and AOL even suffered from declining users in later years.