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YOU'VE GOT BOUGHT

By the numbers: AOL then and now

America Online chairman Steve Case talks to reporters in Tokyo on April 14, 1997.
Reuters
AOL boss Steve Case, back in the good 'ol days.
  • Jason Karaian
By Jason Karaian

Global finance and economics editor

Published This article is more than 2 years old.

Needless to say, the AOL that Verizon is acquiring today is a very different company from the one that was doing the buying during the last tech boom.

With its stock inflated by dot-com mania, AOL was worth $224 billion in today’s money back in 2000, just before it launched an audacious, expensive, and ill-fated bid to combine with Time Warner.

Nothing about AOL today is on the same scale as back then. In a neat bit of symmetry, the $4.4 billion price tag that Verizon is paying to buy the whole of AOL today is the exact same amount as the company’s dial-up subscription revenue in the year 2000. (Which would nonetheless be worth more now, $6 billion, after adjusting for inflation.)

Obviously, Verizon is not buying AOL for its dial-up business. AOL today is a major player in the online ad market, with its advertising platform generating around three-quarters of its sales, versus only a third back in 2000. It may have a third of the employees and a quarter of the sales that it did in its heyday, but AOL is still worth billions, albeit in the single digits rather rather than hundreds of billions.

AOL’s…2000*Today
Market value**$224 billion$4.4 billion
Employees15,0004,500
Total annual revenue$9.5 billion$2.5 billion
Dial-up revenue$6 billion$606.5 million
Dial-up revenue as share of total64%24%
Dial-up subscribers23.2 million2.2 million

* Dollar amounts adjusted for inflation
** Market cap on eve of Time Warner deal announcement in 2000; value of Verizon’s bid in May 2015

Note: Numbers are for the fiscal years ending June 2000 and December 2014, unless otherwise specified.

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