In 2000, which internet company merged with Time Warner to form AOL Time Warner?

In 2000, America Online (AOL) announced its merger with Time Warner, creating the company later known as AOL Time Warner.

The agreement was announced in January 2000 during the peak of the dot-com boom. AOL shareholders were scheduled to own about 55% of the combined company, while Time Warner shareholders would hold about 45%. Although the deal was announced and approved during 2000, regulatory approval was completed and the merger formally closed on January 11, 2001.

The combination was designed to unite AOL’s internet access and online services with Time Warner’s film, television, publishing, music, and cable assets. It was promoted as a merger of old and new media, but the expected synergies failed to materialize as broadband weakened AOL’s dial-up business and the dot-com bubble collapsed.

The company dropped “AOL” from its name in 2003 and returned to the Time Warner name. The episode is often cited as one of the most unsuccessful major corporate mergers in modern business history.