Roots in Gaming

In the early 1980s, prior to the internet's public debut, Control Video Corporation introduced GameLine, a service that allowed Atari 2600 users to rent games via phone lines for just $1. Although this venture failed, it pivoted to become Quantum Computer Services, which launched “Q-Link,” an online gaming platform in 1985. This laid the groundwork for two early online services, PC-Link and Apple-Link, just three years later.

Steve Case, a long-time employee from the Control Video era, renamed the company to America Online in 1991, aiming to capitalize on the burgeoning internet trend. By 1992, AOL went public, rapidly expanding its membership through millions of CDs mailed to households and included in magazines.

A Consumer-Friendly Internet Service

AOL was designed to be accessible to the average consumer, providing internet service via dial-up connections. The iconic, albeit jarring, sound of connecting to the internet evokes nostalgia for many users of that era. By 1995, AOL boasted one million subscribers, which surged to five million in just a year after switching from a pay-per-hour model to a flat monthly rate. The platform offered not just internet access but also email, games, news, and entertainment, effectively becoming a one-stop online portal. Its catchy tagline, “You’ve got mail,” became synonymous with the internet experience.

Feeling invincible, Case led aggressive expansions, acquiring CompuServe in 1998 and Netscape, the creator of the first commercial web browser, in 1999. By 2000, AOL had become the largest internet service provider in the U.S., with a valuation of approximately $125 billion.

A Disastrous Merger

As the new millennium approached, AOL's meteoric rise attracted the attention of media giant Time Warner. In 2001, the two merged to create AOL Time Warner in a deal valued at an astonishing $350 billion, the largest merger of its time.

Initially, the merger seemed beneficial, promising to combine AOL's internet prowess with Time Warner's extensive media resources, including TIME magazine and various film and television operations. However, the partnership quickly unraveled, marked by cultural clashes and an inability to adapt to the fast-evolving broadband landscape. By 2007, AOL's subscriber base plummeted from thirty million to just ten million, leading to the eventual split from Time Warner.

AOL's New Chapter

In 2009, AOL officially separated from Time Warner, maintaining a valuation of $5 billion. The company underwent several leadership changes and sought growth through acquisitions, purchasing entities like Patch Media, TechCrunch, and The Huffington Post. While some acquisitions thrived, AOL continued to linger, managing to retain a few million dial-up users.

In May 2015, Verizon acquired AOL for approximately $4.4 billion. Tim Armstrong, then CEO, stated that the merger would create a unique mobile and OTT media platform, combining the strengths of both companies.

The Internet Zombie That Lives On

Fast forward to May 2021, Verizon sold its media division, including AOL and Yahoo!, to Apollo Global Management for $5 billion, a fraction of its previous valuation. AOL now operates under the Yahoo! banner, with a website that feels cluttered and overwhelming. The company continues to offer a range of subscription plans and products, including the original dial-up service, albeit through a 1-800 number.

Once a titan of the internet, AOL now exists as a mere shadow of its former self, a relic of the past in the expansive digital age.

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