There Must be a Pony in Here Somewhere
The AOL Time Warner Debacle and the Quest for the Digital Future
(paperback 2004)
(hardcover 2003)

“AOL had found itself at the edge of disaster so frequently that one of its first executives, a brassy Vietnam veteran and restaurateur named Jim Kimsey, had taken the punch line of an old joke popularized by Ronald Reagan and made it into an unlikely mantra for the company. It concerned a very optimistic young boy who happened upon a huge pile of horse manure and began digging excitedly. When someone asked him what he was doing covered in muck, the foolish boy answered brightly, ‘There must be a pony in here somewhere!’” —From the Prologue

If you’re wondering what happened after “a company without assets acquired a company without a clue,” as Kara Swisher wryly writes, it’s time to crack open this trenchant book about the doomed merger of America Online and Time Warner. On a quest to discover how the deal of the century became the messiest merger in history, Swisher delivers a rollicking narrative and a keen analysis of this debacle that is a must-read for anyone who wants to understand what it all means for the digital future. Packed with new revelations and on-the-record interviews with key players, it is the first detailed examination of the merger’s aftermath and also looks forward to what is coming next.

It certainly has not been a pretty picture so far—with $100 billion in losses, a sinking stock price, employees in revolt, and lawsuits galore. As Swisher writes, “It is hard not to feel a bit queasy about the whole sorry mess...It felt a bit like I was watching someone fall down a flight of stairs in slow motion, and every bump and thump made me wince. It made me reassess old ideas and wonder what I had gotten wrong. And it left me deeply confused as to what had happened and, more important, what was coming next.”

For Swisher, finding the answers to what went awry is important because she remains a staunch believer in the digital future—maybe not in the AOL Time Warner merger, but in the essential idea at the heart of it that someday the distinction of old and new media will no longer exist. Borrowing from Winston Churchill, Swisher calls it “the end of the beginning” of the digital revolution. “By that, I mean that it is from the ashes of this bust that the really important companies of the next era will emerge. And that evolution will, I believe, be shaped by what happened—and what is happening now—at AOL Time Warner.”

To figure it all out, Swisher takes her reader on a journey that begins with a portrait of two wildly different corporate cultures and businesses that somehow came to believe, in the crucible of the red-hot Internet era, that they could successfully join forces and achieve unprecedented growth and success. When the merger was announced in early 2000, the irresistible combination was hailed as the new paradigm and its executives—Steve Case, Jerry Levin, Bob Pittman—as popular icons of the future. But after the boom so spectacularly turned to bust and the visions of New Media Supremacy lay in ruins, Swisher searches for clues about where the merger went wrong and who is to blame.

More important, she looks to the future of both AOL Time Warner and the Internet as she seeks to answer the key question that the noise of the disaster has all but drowned out. Will the demise of the AOL Time Warner merger be the final and inevitable chapter of the dot-com debacle or will it herald a new paradigm altogether? This book, then, is a primer for the time to come, using the story of the AOL Time Warner merger as the vehicle to show the troubled journey into the future.

aol.com
How Steve Case Beat Bill Gates, Nailed the Netheads, and Made Millions in the War for the Web
(Paperback: Times Books, 1999)
(Hardback: Times Books, 1998)

In 1996, Kara Swisher, then a reporter at The Washington Post, was granted unprecedented access to one of the hottest and most closely watched companies in the world, America Online, Inc. In aol.com, Swisher has written a book that captures the secrets of how AOL beat the competition and became the world's biggest online company. Swisher also reveals the company's behind-the-scenes dealings with Microsoft cofounders Bill Gates and Paul Allen, CompuServe, Prodigy, Netscape, and the Christian Right. (continues)

Throughout its existence, AOL has repeatedly been written off by the media and the high-tech world. Bill Gates threatened to buy it or bury it. Deep-pocketed competitors such as CompuServe and Prodigy thought little of their smaller rival. And AOL made matters worse by committing a series of public-relations and technical blunders that became front page news and enraged its subscribers.

But the company--a "cyber-cockroach"--refused to die. Now, with over eleven million subscribers, AOL is the undisputed leader in the online world, vitally positioned at the nexus of big business, high tech, advertising, and new media. In telling the story of AOL, Swisher also conveys the fascinating history of the online business, which has its origins in the dreams of an eccentric and little-known entrepreneur named Bill Von Meister, whose grand ideas and big spending spawned the fledgling company that would become AOL. But it fell to a young marketing executive named Steve Case to build AOL while fending off an onslaught of wealthier competitors and suitors. Ultimately, as Swisher vividly illustrates, AOL gained supremacy because Case possessed the best vision for his company, establishing AOL as a vibrant virtual community rather than an online shopping center or business tool. Included in that community is an array of enthusiasts, activists, and deviants who at times clash in battles over freedom of expression and family values, a flash point best illustrated here by AOL's fight against the Communications Decency Act.

Re-creating all of the major moments in AOL's frenzied history, aol.com is a fascinating and important inside story about the birth of a new medium, the enterprising innovators who are leading it, and the way it is changing our culture.