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|Company||AOL TimeWarner [Company Info]|
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|20th Jun 2003||Questionable Practice||Excessive Spending|
|Dot-com boom begot obscene wealth and trouble
CALL it the privilege of wealth, AOL-style. The dot-com feeding frenzy was creating obscene riches at virtually every level of the company.
It was a simple calculus: dot-coms paid whopping fees to promote their wares on AOL.
AOL, in turn, reported whopping revenue growth, which spurred investors to buy up its stock, which continued to rise, which prompted employees to cash in their ever-building stock options.
Everyone, it seemed, was becoming an instant millionaire.
Twentysomethings and secretaries retired with sevenfigure bank accounts after a few years in the job.
“It was like, ‘Wow, I just made a few thousand dollars just by sleeping’,” said an official.
It was the logic chain of too much money: wealth begot parties. Parties begot good times. And good times, on occasion, begot trouble.
That was the case in early 2000 when a handful of AOL business officials took a spontaneous excursion to San Francisco on the corporate jet. They called it a “team-building trip”. The destination: The Gold Club topless bar on Howard Street.
Most reckless behaviour took place in a more evolved adult playground: Las Vegas. Company executives were sometimes greeted by a limo and a wealthy AOL business partner, who put them up at the Mansion at the MGM Grand, the exclusive province of the high-roller.
The businessman didn’t limit his largesse to grand suites. One of his close associates said he also “set them up on his own credit line” so that the AOL executives could gamble freely, to a point, without fear of losing their own shirts.
The businessman had his own reasons for being so generous: “He wanted to build their loyalty to him,” the associate said.
If the credit line didn’t work, he offered the AOLers another inducement: high-priced call girls.
AOL said it was unaware of such activities and did not condone them.
Some of its employees thought otherwise, saying the untoward behaviour had a socialising effect, a way of bonding AOLers.
“Everyone has dirt on everyone else,” explained a company official. “It’s mutually assured destruction.”
|Other Reports on AOL TimeWarner|
|8th Aug 2006||Other Issue||AOL TimeWarner||AOL apology for search data error|
|27th May 2006||Fraud Investigation||AOL TimeWarner||Time Warner, Ernst to Settle Fraud Suit|
|24th Aug 2005||Questionable Practice||AOL TimeWarner||AOL pays out after Spitzer probe|
|3rd Aug 2005||Questionable Practice||AOL TimeWarner||Time Warner to Pay $2.4 Billion for AOL Suit|
|10th Jan 2005||Fraud Investigation||AOL TimeWarner||Ex-AOL staff face criminal charge|
|15th Dec 2004||Fraud Investigation||AOL TimeWarner||Time Warner fraud charge settled|
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