note: in the 1990 s, AOL’s Internet pioneer, bring millions of people into the online world; By Armstrong took over as CEO, however, it is already teetering, faces an uncertain future. A series of changes to make it look brand-new, today again a merger with Verizon, it can be a successful transition to a 21st century media conglomerate, the pioneer of fate will be, what kind of?
in 2009, Tim Armstrong, (Tim Armstrong) was appointed chief executive of America online (AOL), shortly after taking office, he began to read management work “the new leadership took 100 days”, You ‘re in charge, now what? .
at the time of Armstrong, 38, Google is a hard worker and extremely attractive advertising sales executive, he has never done a CEO, not to mention the management of a company like disorderly.
but six years later, he was completely with the ability to write their own management works.
he led the AOL through a series of frustrations, with Time Warner, a media giant (Time Warner) “divorce”, accepted by the billions of dollars of sales and mergers and acquisitions, and then face the conflict management, with a hedge fund’s “proxy fight” on the board of directors, even in the later, because the launch a cost-cutting initiatives led him to personally come out a public apology. All these changes have appeared in AOL’s difficult transition period, it from the Internet subscription based origin into a digital media by advertising.
May 12, Armstrong announced that AOL will sell for $4.4 billion to Verizon communications company, said the deal will be celebrating the birth of a new generation of media companies. At the same time, it also saved the AOL, so it won’t have to in the transition path alone.
said on Tuesday to take over as AOL chief executive, he said: “I didn’t completely prepared”, and mentioned that he learned as CEO for the first time the three most important lesson: leaders have talent is very important; Determination and perseverance is essential; Should pay attention to the value of the long-term planning.
“strategic aspects of the short block and you finally compared to achieve long-term goals is insignificant,” said Armstrong. His height 1 meter 93 (6 feet, 4 inches), used to be a university of Connecticut (the Connecticut College) captain of the hockey team, he especially likes examples to explain things in the field of sports. “Because we are strategically insist, AOL has become a more valuable company.”
since the split between AOL and time warner in 2009, its stock value has risen by nearly 120%, and continued steady transition to digital media and advertising technology company. But some analysts also for AOL can rely on their own skill continue to go on. In the past years, AOL has increased advertising revenue, but, in general, its profits are basically comes from its customers, Internet subscription service, customer base is one of them.
now, even if AOL merged with Verizon, however, it would be successful transformation into a media conglomerate in the 21st century is still a problem that there is no answer.
in addition to a few large investment company, Armstrong is one of the largest individual shareholder in AOL company. In the complete merged with Verizon, his stock value will rise to about $8.4 million.
“his body in its place, has done the best.” Nomura securities (Nomura) media analyst Anthony di clement (Anthony DiClemente) said, “in seeking development opportunities for shareholders, and the performance of sliding between, Armstrong as company executives, have done my best to balance the relationship of the two.
in Armstrong, as the position of the first time, AOL is already a sunset in the Internet, like the dinosaurs extinct. But in the early 1990 s, it is the vanguard of the Internet bring millions of people into the online world. In 2000, then big mergers, it is stakeholders, to use its own shares of high-priced acquisition of time warner. At that time, or time warner, a company is much smaller than it is, is that at least in accordance with the standards of the stock market value. The deal is now considered one of the worst deal in history. But, when consumers have to give up its dial-up Internet access service in order to obtain faster broadband connection, the company is also trying to adapt to the change of the Internet age.
a batch of senior executives, try to AOL into digital media. But in front of Google, Facebook, the rising star, AOL still seem a bit in the shade. So, the question comes, whether the company can gain complete salvation?
AOL’s purchase price is $4.4 billion, the valuation is Facebook, even WhatApp the success of these new company valuations of a fraction, you know, Facebook spent $19 billion buying a WhatApp. AOL’s valuation is only slightly higher than Vice, and Vice the media star of this are still thrive stage is sought after by private investors: praise, cash.
in Armstrong’s strategy, dealmaking is one of the most prominent. He led more than 20 mergers and acquisitions, AOL’s total billions of dollars, the ultimate goal is to strengthen the company’s media and advertising technology strength.
“compared with five or six years ago, it has been completely refreshed. Armstrong said.
it is the most worth mentioning on science and technology news web site TechCrunch deals of this kind of content producers. But their importance than news website Huffington Post (The Huffington Post), AOL in The four years ago to spend $315 million for it.
however, is not Armstrong all efforts have been successful.
the most prominent his mistake to local site collection Patch. Armstrong had been the site’s co-founder, in took AOL chief executive after few weeks you bought it. (but he was not involved in acquisition process.)
criticism, he said, investors should not put billions of dollars so splurge to a company is at stake. Some said, he dragged on for too long time, so that can not half will be reduced.
add up all these industries, it formed the Armstrong once said, he wants to build a new media empire, and fully capable of attractive advertising price. Armstrong said, after completing the acquisition, the huffington post this one alone achieved remarkable growth. Is the biggest deal (AOL fulfill its $405 million acquisition of video advertising company Adap. TV.)
however, AOL has also been are under pressure to consider many trading. Three years ago, because facing pressure from radical to impulse Value of fund Starboard, it paid $1 billion to Microsoft to sell a number of patents.
for Armstrong, perhaps another potential, the largest single transaction is a transaction with yahoo, Armstrong had interest in it a little. Yahoo had is a giant in the field of the Internet, and later because of “.com “and lost the bursting of the dotcom bubble.
for many years, the two companies merge problem to negotiate many times, until last fall, investors are still trying to push both sides merge the issue, though the two companies’ executives say not interested in the merge.
now, this business because of Verizon, Armstrong at AOL and management of digital media content business and suspended in the air, the fate of anyone’s guess.
at present, whether for Verizon interested in preserving the huffington post, and other well-known media brand is less clear. According to some information is not allowed to say the matter of the people, in recent months, AOL has been considering splitting the huffington post. The German media group, Axel Springer, a private equity firm General Atlantic and other companies have said they were interested in.
Armstrong said, AOL and Verizon is the huge investment on “content”, and “content is an important part in the future.”
when asked, the founder of the Huffington post, as well as AOL executives, Arianna Huffington (Arianna Huffington) will work for Verizon, Armstrong clear ground to say: “of course.”
in an interview on Tuesday, Armstrong said he would remain at Verizon, and said that he has for many years with the company signed an agreement of the contract. A friend once said, his ambition is to become of the digital age, murdoch. But Armstrong said he was just realize your dream.
“if you want to talk about building a global media platform,” he said, “is heading for the purpose of this deal, but I also came to this today.”
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