Publications
Publications
- October 2001 (Revised April 2002)
- HBS Case Collection
America Online, Inc.: Disclosure Strategy
By: Amy P. Hutton and David Lane
Abstract
Since going public, AOL had disclosed on a quarterly basis supplemental metrics meant to give analysts and investors a way of tracking growth in its subscriber base and the value created through its marketing efforts. These metrics gave management's conversations with sell-side analysts focus and armed analysts with the evidence they needed to sell AOL's emerging business to leery institutional investors. This case picks up in early 1998 when AOL is transitioning from being an Internet service provider with revenues generated primarily from subscribers to becoming an online media company with a significant proportion of its revenues coming from online advertising and e-commerce. As the company transitioned, management had to decide whether and which supplemental metrics to disclose on a quarterly basis. The challenge was to select metrics that gave the financial community a way of understanding AOL's performance as its business model evolved, without limiting AOL's future flexibility. Teaching Purpose: Provides an opportunity to discuss the advantages and disadvantages of supplemental disclosures as a tool to educate Wall Street about a firm's evolving business model. Withdrawn 08/15/02.
Keywords
Business Model; Internet and the Web; Change Management; Internet and the Web; Corporate Disclosure; Media; Digital Marketing; Information Technology Industry; Media and Broadcasting Industry
Citation
Hutton, Amy P., and David Lane. "America Online, Inc.: Disclosure Strategy." Harvard Business School Case 102-004, October 2001. (Revised April 2002.)