History repeats
Fast forward to 2001 and the connections with the AOL - Time Warner merger are all too clear. The ambition to combine a traditional media business with the burgeoning internet sector was epic. But a culture clash soon blew up between AOL's fast-paced, internet-driven culture and Time Warner's more traditional media environment.
When the dot-com bubble burst, tanking AOL’s stock value and materially destabilizing the merged entity, it was little surprise the anticipated synergies between the two companies failed to materialize, resulting in massive financial losses and a decline in shareholder value2.
Once again, executives’ best-laid plans foundered very publicly in the space between a rapidly changing landscape and lack of a cohesive strategy.