AOL

AOL was a distribution gatekeeper that others courted or paid. Google bet its survival on a 2002 deal (85% of ad revenue, a $100 million guarantee) and AOL earned $35 million in six months, $200 million in 2003. Microsoft's IE deals helped it reach near 100% share by 2000. Eisner refused AOL's merger; AOL's inflated stock later destroyed value at Time Warner. Lesson: distribution is leverage, but beware overvalued stock.