Remember AOL Time Warner?
Junddep Junnarkar and Jim Hu, AOL to buy Time Warner in historic merger - CNET News, 2000
In a stunning announcement, America Online said today that it will acquire Time Warner to create the world’s largest media company.
The new company will be called AOL Time Warner and will combine AOL’s online services with Time Warner’s vast media and cable assets. In a world where online services, media and entertainment are rapidly converging, the new company could have almost unparalleled resources.
“It is probably the most significant development in the Internet business world to date,” said Phil Leigh, an analyst at Raymond James. “If it hasn’t been evident to most of us yet, it should be obvious to us now that the Internet is about audio and video and not just merely text and graphics.”
News of the merger, the largest in corporate history, sent Time Warner’s stock up at “dot-com” speed, with shares rising $25.31, or 39 percent, to $90.06. The stock has traded as high as $78.63 and as low as $57.19 during the past 52 weeks.
AOL, on the other hand, rose early but ended the day lower, falling $1.88, or more than 2 percent, to $71.88. The stock has traded as high as $95.81 and as low as $32.50 during the past 52 weeks.
The purchase, an all-stock deal, amounted to more than $160 billion based on today’s trading prices. According to both companies, the new firm will have an estimated combined value of $350 billion.
[…]
Today’s deal also gives AOL access to Time Warner’s media properties such as CNN, Warner Bros., Sports Illustrated and many others.
The new company will have more than 100 million paying subscribers, including AOL’s dial-up customers and Time Warner’s cable and magazine subscribers, AOL chief financial officer J. Michael Kelly said at the news conference.
Steve Case, the chairman and chief executive of AOL, will become chairman of the board of the new company. Time Warner’s Levin will become AOL Time Warner’s CEO.
[…]
Analysts said that the Net landscape is likely to change rapidly over the course of the year as large capitalized Internet firms look to acquire media companies. Web portal Yahoo has a market cap of $107 billion—far greater than some leading media companies, including Disney, which has a cap of $64.19 billion.
“About 18 months ago, the feeling was that some of the media companies would buy Internet companies, but what happened is that the valuations got so reversed that it is really the opposite that is likely,” said Raymond James’ Leigh. “With 55 percent of the new company’s stock being controlled by AOL shareholders, I think AOL is in the driver’s seat. Today’s deal is psychologically a big step, and now it is likely that we will see others come along.”
For all those folks who forget how much of a world-beater AOL Time Warner seemed, and how well positioned it was for the broadband era just over the horizon.
The same is being said now about Facebook.
To me Facebook already feels over. I really don’t feel like I’m missing anything. Look at it this way. There’s lots of stuff going on right now that I’m not part of. That’s the way it goes. Me and Facebook are over. It’s going to stay that way. And if I’m on a ship that’s sinking, well I’ve had a good run, and I can afford to go down with the ship, along with people who share my values. It’s a cause, I’ve discovered, that’s worth giving something up for. #
- Dave Winer, Scoble: I’ll go down with the ship via Scripting News
Facebook is the new AOL, despite the market cap. But it’s headed for a hard landing for other reasons than Winer is pushing. Facebook will fail because of the imminent rise of social operating systems — future versions of iOS, Mac OS X, and Android — which will break the Facebook monolith to bits.
The unwillingness of Facebook and Google to share a public commons when it comes to the intersection of search and social is corrosive to the connective tissue of our shared culture. But as with all things Internet, we’ll just identify the damage and route around it. It’s just too bad we have to do that, and in the long run, it’s bad for Facebook, bad for Google, and bad for all of us. (BTW, Google also doesn’t show Twitter or Flickr results either, or any other “social” service. Just its own, Google and Picasa.)
- John Battelle, Search, Plus Your World, As Long As It’s Our World
Once again, Google steps in a pile of doodoo with its maladroit efforts in trying to absorb the social web. Unwilling to simply index things and offer them up as search results, Google wants to ‘socialize’ search. What this means is that search is just another battlefield for Google to fight the war for the future against Facebook, Twitter, etc.
On one hand, you have to admit that Google faces a new world, one that is increasingly social, and the search company has to get in there. But this is not the way to do it.
I continue to be amazed that Google doesn’t look at its email and calendar apps as a good place to build social, instead of dicking around with search.
The Red Giant (Five Reasons Facebook is Over) - Joshua Brown via The Reformed Broker
Joshua Brown makes some arguments about the salad days of Facebook being over, and one I completely buy:
Joshua Brown via The Reformed Broker
Something new comes along - It is laughable how seamlessly, completely and quickly Facebook supplanted MySpace - let’s not act like anything on the web is permanently dominant forever. Facebook is picking up major steam in countries like Indonesia and Brazil right now, the rate of new users signing up is breathtaking. But consider that they are pulling people from Google-owned network Orkut and that one day someone else will do the same to them.
[…]
Kids rebel against a social network that includes their dorky parents - Can you imagine being 15 years old and being involved in any kind of socializing that involved your parents and aunts and uncles and Sunday school teachers and god knows who else from the dark side? There is a Facebook hipness hourglass somewhere and it has already been turned over…it is only a matter of time before the grains of sand slipping from the top to the bottom become noticeable and the tide turns. The kids will be first, the advertisers will follow. In the end, Facebook will be comprised of dormant and inactive profiles with a majority of its “engagement” coming from people in their forties stalking their exes from high school in the late 80’s. For the younger generation, talking about Facebook at all will become painfully lame. Every generation mocks the one that came before. This moment rapidly approaches, the emptying of that hipness hourglass is inexorable.
I’ve said for years that Facebook is the new AOL, a service that made the big forbidding and vast Internet approachable for the masses, and then was instantly passé. And Brown’s scenario will become truth as soon as something un-Facebook-like and hard for grown-ups to understand pops into existence, and starts spiriting the kids away like the Pied Piper. Kids will defect to be different, and it’s game over in a few years.
His other points have merit too, but I don’t think they matter an iota compared with the cool kids playing in a different park.
Facebook caused more divorce heartache in 2011 via UK Divorce From Divorce-Online
Apparently, divorce proceedings in the UK increasingly involve mention of Facebook, either as a cause of discord or as proof of inappropriate behavior:
via UK Divorce From Divorce-Online
A survey carried out by uk divorce website www.divorce-online.co.uk in December 2009 found that 20% of behaviour petitions contained the word “Facebook.”.
A follow up survey in December 2011 has found that number has alarmingly increased during 2011 to 33% of behaviour allegations in petitions. 5000 petitions were queried as in the 2009 sample.
The most common reasons where Facebook was cited as evidence were once again relating to spouses behaviour with the opposite sex but also spouses using Facebook to make comments about their exes once they had separated and using their public walls as weapons in their divorce battle.
Top three reasons.
1) Inappropriate messages to members of the opposite sex.
2) Separated spouses posting nasty comments about each other.
3) Facebook friends reporting spouse’s behaviour.
Twitter only appeared in 20 petitions as part of behaviour allegations, and again it was the use of twitter as a communication tool to make comments about exes that featured in most tweets.
I guess Twitter just isn’t as tactile a medium as Facebook.
And similar trends are going on in the US, too:
An overwhelming 81% of the nation’s top divorce attorneys say they have seen an increase in the number of cases using social networking evidence during the past five years, according to a recent [February 2010] survey of the American Academy of Matrimonial Lawyers (AAML). Facebook holds the distinction of being the unrivaled leader for online divorce evidence with 66% citing it as the primary source.
[…]
Overall, 81% of AAML members cited an increase in the use of evidence from social networking websites during the past five years, while just 19% said there was no change. Facebook is the primary source of this type of evidence according to 66% of the AAML respondents, while MySpace follows with 15%, Twitter at 5%, and other choices listed by 14%.
(h/t futuramb)
The End Of An Age, Or The End Of The Beginning?
Jeremiah Owyang wants to declare the end of the golden age of tech blogging, or, even more portentously, he says
The tech blogosphere, as we know it, is over.
This could be interpreted in a number of ways, but at face value — and leaving aside for the moment the specifics of his argument — I agree. The ‘blogosphere’ — that mid ’00s concept of a community of bloggers writing for each others and cross-linking through trackbacks and threaded comments — that communitarian vision has been superseded by other ideas of what is, or should be, happening, online.
However, I don’t want to adopt the metaphor that is used by people that fear the future, and long for a halcyon past. I won’t go along with the ‘golden age’ rhetoric, which is generally employed by those arguing a fall from a better past into a less virtuous present. (The concept comes from ancient Greek mythology, with its Golden, Silver, Bronze, Iron ages, and then the present, debased age.)
I prefer Winston Churchill’s trope:
Now this is not the end. It is not even the beginning of the end. But it is, perhaps, the end of the beginning.

Winston Churchill by Yousef Karsh
Churchill was, of course, referring to a turning point in the struggle with Germany during World War II, while we are discussing the transition from a more primitive and less social phase in the web revolution, into something more complex and, ultimately, more rewarding.
The points that Jeremiah makes to support his argument are very tactical, not looking at the strategic changes going on technologically or societally. His ‘trends’ aren’t really trends, but narrow extrapolations from recent events masquerading as business advice. They are these, in brief:
Trend 1: Corporate acquisitions stymie innovation
Trend 2: Tech blogs are experiencing major talent turnover
Trend 3: The audience needs have changed, they want: faster, smaller, and social
Trend 4: As space matures, business models solidify – giving room for new disruptors
These observations are interesting as far as they go, but aside from the ‘faster, small, and social’ I don’t think these are major, in any sense.
I’d like to offer a few trends that may be implied by Jeremiah’s lists or by the comments of various bloggers that he cites, but aren’t really characterized very well in his post.
It’s obvious that Jeremiah is caught up in the issues confronting three groups of web denizens posting their contributions posting on technology platforms based on a now well-established model of web publishing, which we call blogging. This is unexamined in his piece, but the model of a website made up of chronologically ordered posts with comments in a thread on each piece, and a variety of navigation or advertising widgets in the margin may be getting tired, and may not gibe with other modern advances in online media dynamics. At any rate, Owyang’s concerns seem to be directed toward three constituencies:
- Independent authors or analysts, who may find it harder to operate in a changed media world, or to make a living from blogging, if indeed very many did so.
- Blog network companies — like Techcrunch, Mashable, and The Next Web — that are confronted with the invasion of major media companies, consolidation, and turnover.
- And last, the ‘audience’ — by which Owyang means everyone else. I will put to the side that social media was supposed to be about the end of the audience — Jay Rosen’s famous ‘the people formerly known as the audience’ — and simply state that Owyang and the others groups he appears to be concerned about have largely internalized a media-centric worldview, while mouthing mostly empty platitudes about the power of social media.
He doesn’t seem particularly concerned about the problems of major media companies, which continue to be deadly serious, nor does he refer to the notable advances that media companies like The Atlantic have accomplished. Nor does he spend much time talking about the technology companies — like Tumblr, Twitter, and Flipboard — that are involved in the tectonic changes going on today; changes that make the ebb and flow of small-potato business models surrounding tech blogging look like the scrambling of ants underneath the construction of the Brooklyn Bridge.
Yes, we are veering into a new era of web media; and it’s about goddamned time.
Here’s a few of the most powerful trends, in summary:
- The rise of the web of flow, and the fall of the web of pages — Ubiquitous and highspeed connectivity and the emergence of a new breed of ‘genius’ mobile devices have led to a web in which information is perceived as and designed to be experienced in motion. The user experience has shifted from wandering around, searching for information, moving via URLs from page to page. Increasingly, information flows to us through the agency of solutions like Twitter, Tumblr, and Flipboard, mediated by social and algorithmic ‘engines of meaning’, as Bruce Sterling styled it. We are no longer experiencing the web as exploring a library, but more like a drinking from a fire hose.
- The social revolution and social tools — While a lot of the discussion about the rise of blogging talked about social media, the technology involved wasn’t particularly social. However, the emergence of network-based social tools — notably Facebook, Twitter, and thousands of other niche offerings — have led to a dramatic and unprecedented change in information transmission: increasingly, people are getting their news and insight via social networks, channeled through other, known individuals. The simplest proof of this state change is that Twitter is now the emergency broadcast system, the canary in the coal mine, the first place that the most important information appears. These tools form the bloodstream and the nervous system for the connected world we now inhabit. And the blogs and other media tools that were principally about publishing pages in the previous era, are now primarily oriented toward pushing links and summaries into the social nervous system.
- Social learning, innovation, and curation — As the population online grows, piling into world-spanning social networks, there are a number of systemic changes. As Stalin is supposed to have said, quantity has a quality of its own. As the online population and social density online goes up, there are phase transitions involved, and I believe that somewhere in the past year or two, we passed through a threshold. As Mark Pagel argues, our level of social connection has grown to the point where new ideas can travel much more quickly and economically: this includes all ideas, not just those involved in tech blogging, but tech blogging too. The best ideas — and their originators — will rise to the top more quickly, and as a result, Pagel maintains that we have a lessened need for innovators, and at the same time we are learning more quickly than before. I believe that this is the complementary trend allied to the increased perceived need for good curators: the value of discernment — which ideas are more useful — has gone up, while the value of creating new ideas has gone down. And, of course, you can substitute ‘write yet another post about iPhone apps or the Zygna IPO’ wherever I wrote ‘idea’ or ‘innovation’.
Obviously, Owyang and those leaving comments on his post weren’t necessarily treating these trends. The post was ostensibly about the changes in the world of tech blogging, after all. But I don’t see how you can meaningfully explore that niche without the larger context.
Brian Solis sees the larger context as necessary as well:
I recently wrote about my thoughts on the state and future of blogs, which is of course far grander than the world of tech blogging. And as you can see, blogging is alive and clicking.
Yes, micromedia, video, and social transactions/actions are breaking through our digital levees and causing our social streams to flood. And, yes, Flipboard, Zite, and the like (get it?), are forcing our consumption patterns into rapid-fire actions and reactions. You have a choice. You are either a content creator, curator or consumer. You can be all of course. But, think about this beyond the mental equivalent of 140 characters. What do you stand for and what do you want to become known for? The answer is different for each of us. But, content, context, and continuity are all I need to learn, make decisions and in turn inspire others.
I don’t buy the consumer angle — after all, every person is curating for at least one person, themselves — so I consider it a cardinality distinction: curating for one is not appreciably different than curating for two or ten. All curators — of whatever degree of discernment — started by curating for themselves. But Solis clearly gets the big picture, and I agree totally that what is bubbling up today will make the web a place where we continue to come to learn, make decisions, and connect with — and perhaps inspire? — others to do the same.
Graph Rank: Just Another Proof That Facebook Should Be Boycotted
A former CTO was briefed on ‘Facebook’s advertising strategy’ (although it’s not clear by who) and suggest that they are up to no good:
Anonymous via Betabeat
If you logged onto Facebook yesterday, perhaps you caught a link at the top of the News Feed that read: “About Ads: Ever wonder how Facebook makes money? Get the details.” The answers provided some context on the news that starting in January, Facebook will start integrating a type of ad, called “sponsored stories,” that display your friends faces next to content they have “liked” in larger-sized ads your News Feed mix. “Facebook makes its money from showing you ads,” the company told consumers yesterday and with the ramp up to its spring 2012 IPO, the social network is getting serious about that endeavor.
In what seemed like an unrelated move, in September, Facebook announced a brand new type of profile called Timeline, where your whole personal history is laid out by month-by-month, all the way back to your birth. At the time, Facebook described it to consumers as a chance to: “Share and highlight your most memorable posts, photos and life events on your timeline. This is where you can tell your story from beginning, to middle, to now.” By the end of this year all 800 million plus Facebook profiles will have been converted to this new interface.

What most users don’t know is that the new features being introduced are all centered around increasing the value of Facebook to advertisers, to the point where Facebook representatives have been selling the idea that Timeline is actually about re-conceptualizing users around their consumer preferences, or as they put it, “brands are now an essential part of people’s identities.”
The name itself is cleverly designed to conceal the fact that your profile no longer arranges information chronologically. Yes, things are laid out by year and by month. But, when it comes to what’s displayed to your social circle at any given time, other metrics, including direct payments to Facebook itself, will now influence the ranking and placement of stories. This payola will be a crucial part of the graph rank, the new metric for placement that the social network uses to determine what appears on your profile.
“Graph Rank” is a complex and non-published algorithm, but we know direct payments to Facebook and app/user popularity are important parts of the ranking. The newest thing is no longer on top. There is a rough month-by-month sort, but within the month it’s graph rank, not chronological order, that determines placement.
So, Facebook is selling our memories — outr timeline — to advertisers. When users scroll back in their timeline the weighting of what was most important to us back in December 2011, say, will be based on advertising dollars, not something intrinsic to our lives, or the social weighting of the interactions we had with friends.
Everyone should simply stop using Facebook. It’s been obvious for years that they could care less about it: we are an ore that they are mining for money. We are not people to them, except to the extent that our human qualities provide a way to exploit us.
If You Like Links, You’ll Hate What Facebook Is Doing To Them - The Future Buzz
Case in point, this weekend I tried to share a link to a story in The Guardian I found interesting. You’ll note (as I highlighted in a red box) even my browser recognized this was a link to the publication’s website, not Facebook.
However, due to how The Guardian has configured their site’s Facebook integration, anyone clicking the link is not taken to the expected URL. Instead a user is taken to this page to authorize use of The Guardian application.
Facebook is hijacking links to external websites of publications that have built social news apps on Facebook, and redirecting users to said internal Facebook apps. Ridiculous.
Sounds just like Facebook.
As Facebook Aims at Millions of Users, Some Are Content to Sit Out - Jenna Wortham via NYTimes.com
Jenna Wortham pokes at the superficial reasons why a small number of wallflowers opt not to use Facebook, but there’s not much new information here.
Although I found the descriptions of the social pressure to get the ‘unfaced’ to use Facebook interesting:
Will Brennan, a 26-year-old Brooklyn resident, said he had “heard too many horror stories” about the privacy pitfalls of Facebook. But he said friends are not always sympathetic to his anti-social-media stance.
“I get asked to sign up at least twice a month,” Mr. Brennan said. “I get harangued for ruining their plans by not being on Facebook.”
And whether there is haranguing involved or not, the rebels say their no-Facebook status tends to be a hot topic of conversation — much as a decision not to own a television might have been in an earlier media era.
“People always raise an eyebrow,” said Chris Munns, 29, who works as a systems administrator in New York. “But my life has gone on just fine without it. I’m not a shut-in. I have friends and quite an enjoyable life in Manhattan, so I can’t say it makes me feel like I’m missing out on life at all.”
But the peer pressure is only going to increase. Susan Etlinger, an analyst at the Altimeter Group, said society was adopting new behaviors and expectations in response to the near-ubiquity of Facebook and other social networks.
“People may start to ask the question that, if you aren’t on social channels, why not? Are you hiding something?” she said. “The norms are shifting.”
This kind of thinking cuts both ways for the Facebook holdouts. Mr. Munns said his dating life had benefited from his lack of an online dossier: “They haven’t had a chance to dig up your entire life on Facebook before you meet.”
But Ms. Gable said such background checks were the one thing she needed Facebook for.
“If I have a crush on a guy, I’ll make my friends look him up for me,” Ms. Gable said. “But that’s as far as it goes.”