DiscoverThe Dividend CafeWhat to Learn from the Worst Business Deal in History
What to Learn from the Worst Business Deal in History

What to Learn from the Worst Business Deal in History

Update: 2025-07-18
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Today's Post - https://bahnsen.co/4f3mRWM


Lessons from the AOL-Time Warner Merger: A Historical Business Failure


In this episode of the Dividend Cafe, host David Bahnsen explores the infamous AOL-Time Warner merger of 2000, marking its 25-year anniversary. He delves into the history of both companies, the circumstances leading to the merger, and the reasons behind its failure. David underscores the importance of learning from past mistakes in the investment world and highlights the dangers of overlooking fundamentals and the human factors in business decisions. Drawing from his personal experience and extensive reading, David sheds light on the impact of corporate egotism, inflated valuations, and the lack of strategic alignment in this monumental $200 billion business disaster.


00:00 Introduction to Dividend Cafe


00:03 The Importance of Learning from History


00:59 The AOL-Time Warner Merger: A Historical Overview


03:56 The Rise and Fall of AOL


05:30 The Complex History of Time Warner


07:53 The Merger: A Recipe for Disaster


11:09 The Human Element in Mergers and Acquisitions


16:04 Financial Missteps and Overvaluation


19:12 The Aftermath and Lessons Learned


23:54 Conclusion: Principles for Future Investments


Links mentioned in this episode:
DividendCafe.com


TheBahnsenGroup.com

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What to Learn from the Worst Business Deal in History

What to Learn from the Worst Business Deal in History

The Bahnsen Group