2. Gerald M. Levin and Steve Case: AOL and Time Warner Merger
American Online (AOL) decided to pursue the strategy of re-invention after the broadband industry seriously threatened its main business, dialup services. In 2000, the company purchased Time Warner for a phenomenal amount of $164 billion. Unfortunately, the joint business failed to capitalize Time Warner’s advantages, In addition, AOL’s subscribers in 2007 dropped to just over 5 million from 30 million at the height of company’s popularity. The market valuation dropped significantly to $1.66 billion in 2011and now Time Warner is a separate public company.