X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

There is a growing body of thought that argues the so-called AOL Time Warner “merger of equals” might not have gone so far astray had it not been for Chairman Stephen Case’s ill-timed decisions to buy back the 49% stake in AOL Europe owned by German publishing giant Bertelsmann AG and acquire European magazine publisher IPC Media. Admittedly, the U.S. media giant would neither be saddled with $29 billion of debt today nor facing threats of below-investment-grade status from credit rating agencies. The New York-based company also would not have to be considering the sale of some of its most profitable properties at a time of severely depressed asset prices. “It would have made a huge difference if the merged company had not made that AOL Europe purchase right after completion of the merger,” says Sean Egan, a managing director at Philadelphia-based ratings firm Egan-Jones Ratings Co. “What they were doing in a sense was doubling their bet on the Internet economy, right before the Internet economy tanked.”

Treasury & Risk

Join Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now
Join Treasury & Risk

Copyright © 2019 ALM Media Properties, LLC. All Rights Reserved.