AOL’s Dial-up for Dollars

Sometimes I get so full of myself. I think I have a clear understanding of the business world and the operating environment that we work in. Then I read a story that there are not one but two companies interested in Time Warner’s dial-up business from its AOL arm.

I am now as confused as a cow looking through a new fence. What could EarthLink AND Liberty Media want with this dying asset? Well, sometimes the devil is in the details. Liberty Media wants to swap stock they hold in Time Warner, which isn’t a bad idea if they can figure out which one is falling slower; not a good position to be in if you are Time Warner. Why EarthLink is after this pig is beyond me.

Look at the numbers

AOL released second-quarter earnings showing a meager 2 per cent increase in advertising revenue while reporting a 29 per cent decrease in revenues from paying subscribers. That’s not a good business to be competing for, but somehow the buggy whip of internet access is worth $1.5 billion but decreasing fast.

And this is where I scratch my head….

I can’t see the end game here. Maybe this is like one of those math questions on the SAT’s that leaves one or more variables out because I just can’t connect the dots. What is there to gain? I looked at the stats for this blog, and 1.46% of you use dial-up, while Blabrmouth.com isn’t a fair representation for all the people that access the internet, I have to assume those numbers are pretty close on most sites. So, I am asking you guys, what is the play here?