AOL

AOL was one of the largest Internet-access subscription service companies in the United States, introducing millions of consumers to the World Wide Web during the 1990s and early 2000s. Known for its distinctive “You’ve got mail” alert—an audio cue that became lodged in the popular culture and inspired a Hollywood romantic comedy of the same name in 1998—the company also pioneered online community-building through features such as buddy lists and AOL Instant Messenger (AIM), which operated from 1997 until it was shut down in 2017.

Origins and leadership

The company began in 1985 as Quantum Computer Services, a small online-services provider in Vienna, Virginia, catering to Apple II and Macintosh computer users. Four years later it changed its name to America Online and in 1992–93 expanded to Microsoft Windows-based personal computers, a shift that dramatically accelerated subscriber growth.

Steve Case, Quantum’s cofounder and vice president of marketing, became chief executive officer (CEO) in 1991. Under his leadership, AOL transformed from a niche product for tech enthusiasts into the dominant consumer Internet company of its time. On March 19, 1992, America Online completed its initial public offering (IPO), becoming one of the earliest consumer Internet companies to trade publicly.

Case drove aggressive growth through easy-to-use software, accessible pricing, and one of the most extensive direct-mail marketing campaigns in corporate history—sending millions of floppy disks and compact discs (CDs) promising hours of free Internet access. These efforts, along with AOL’s community tools, helped demystify the Internet for the average household.

By the end of the 1990s, AOL had surpassed 20 million subscribers and was still growing rapidly. In 1996, AOL relocated its headquarters to nearby Dulles, Virginia, during its expansion.

Merger with Time Warner

Case negotiated a merger with media giant Time Warner valued at $106 billion, announced in January 2000 and, at the time, the largest corporate merger in U.S. history. The deal closed in January 2001, creating AOL Time Warner, with Case as chair. He stepped down as CEO when the merger was completed and resigned as chair in 2003, as the company struggled with the fallout from the dot-com crash and a sharp decline in advertising revenue.

The dial-up era

For many users in the 1990s, AOL’s dial-up service was the Internet. Connecting meant listening to a sequence of beeps and static as the modem negotiated with AOL’s servers—that was sometimes followed by the frustration of being disconnected if someone in the household picked up a phone extension. AOL’s software bundled e-mail, chat rooms, news, weather, and games in one place, providing a self-contained online world at a time when the wider Internet could be daunting to navigate. For many consumers, AOL’s service was their first experience with e-mail, and its simple interface and the familiar “You’ve got mail” alert helped make electronic messaging a mainstream form of communication.

At its peak in the early 2000s, AOL served more than 30 million subscribers worldwide. But the shift to broadband and wireless Internet access gradually eroded that customer base. By 2015, just 2.1 million subscribers remained, and in 2023, the U.S. Census Bureau estimated just 163,401 U.S. households still used dial-up. In August 2025, AOL said it would discontinue the service on September 30, ending one of the last major dial-up offerings in the country.

Other services and shifts

As AOL evolved, so did its business. Beyond Internet access, it developed ventures such as celebrity news site TMZ.com (in partnership with Warner Brothers), AOL Video, online mapping service MapQuest, and IN2TV, a free streaming service for classic television shows. In the mid-2000s, AOL also developed Advertising.com into one of the largest third-party online advertising networks in the U.S.

AIM fades away

AIM became one of the most popular instant messaging services of the early Internet, but its user base began to decline in the 2010s as newer, more advanced products emerged. The service was discontinued in 2017. AOL has continued to provide free e-mail accounts and paid subscription plans offering identity protection, technical support, and other online services, and these offerings are expected to continue after the shutdown of its dial-up service.

Corporate transitions

AOL went public in 1991 and became a Wall Street favorite during the tech boom of the late 1990s. After its high-profile merger with Time Warner in 2001, the combined company struggled with culture clashes between the traditional media side and the fast-moving Internet business, as well as the collapse of the dot-com bubble. Advertising revenues shrank, subscriber numbers declined, and the merger—once hailed as visionary—came to be seen as one of the most disappointing in corporate history.

By late 2009, Time Warner decided to spin off AOL as an independent company. Tim Armstrong, a former Google (GOOGL) advertising executive, was named chair and CEO in March 2009, charged with revitalizing the struggling company. Under his leadership, AOL shifted its focus toward digital content and advertising and acquired The Huffington Post in 2011. As part of the $315 million deal, The Huffington Post Media Group was formed, with Arianna Huffington as its president and editor in chief. The new venture included all of AOL’s media properties and The Huffington Post. AOL returned to the stock market in December 2009 with a renewed, though smaller, vision for its future.

In June 2015, Verizon Communications (VZ) agreed to acquire AOL for about $4.4 billion, a deal completed later that month. The purchase gave Verizon access to AOL’s advertising technology and digital content properties, positioning the telecommunications company to expand its mobile video and advertising businesses.

Two years later, Verizon purchased Yahoo! Inc.’s core Internet business for $4.48 billion and merged it with AOL under a new name, Oath. Oath was renamed Verizon Media Group in 2018. In May 2021, Verizon sold the media division—including both AOL and Yahoo—to private equity firm Apollo Global Management for $5 billion, retaining a 10% stake. As of 2025, the business operated under the Yahoo name.

Legacy

AOL’s trajectory from start-up to household name to a company largely displaced by newer technologies mirrors the rapid evolution of online communication. At its height, AOL was the primary way millions first experienced e-mail and the Internet, shaping habits and expectations for digital communication. Its distinctive sounds, messaging tools, and cultural presence left a lasting mark on the history of the Internet.

During its peak years, AOL also played a role in early debates over net neutrality, promoted online safety campaigns, and competed vigorously with other web portals such as Yahoo and MSN. AOL’s operations extended beyond the U.S. to include Europe, Asia, and the rest of the Americas during the height of its influence.