This article focuses on takeover of Time Warner
Inc. by America Online Inc. (AOL). This was possible because of AOL's good
understanding of its customers, clever marketing and astute political lobbying.
Up to the day of the merger, AOL's main lobbying campaign sought to persuade
federal, state, and local governments that shareholders of AT&T Corp., be
forced to lease their cable TV links to AOL at prices overseen by the
government. AOL needed easy access to cable TV because AT&T'S cable
ownership allows it to offer better Internet services. But when AOL bought Time
Warner and its stock of cable links, it immediately dropped the lobbying
campaign. AOL's lobbying team started with one person in 1995. It has now grown
to a team of roughly 10, plus a group of outside lobbyists hired for particular
battles. The merger with Time Warner will roughly double the size of AOL's
lobbying forces and boost its declared lobbying budget to roughly $3 million
per year. AOL's lobbyists are adamant in saying the federal government should
end curbs on the use of encryption. AOL and most of the Internet industry
backed by a growing number of libertarians would prefer citizens register and
vote at a Web site rather than at a polling booth, expressing themselves
individually.