Market Overview

This Day In Market History: AOL Is Founded

This Day In Market History: AOL Is Founded

Each day, Benzinga takes a look back at a notable market-related moment that occurred on this date.

What Happened?

On this day 34 years ago, Quantum Computer Sciences was founded in Delaware.

Where The Market Was

The Dow finished the day at 1,301.97. The S&P 500 traded at 188.29. Today, the Dow is trading at 25,617.74 and the S&P 500 is trading at 2,840.55

What Else Was Going On In The World?

In 1985, The Coca-Cola Co (NYSE: KO) launched New Coke, triggering major backlash from customers. Michael Jordan was named NBA Rookie of the Year. Average monthly rent in the U.S. was $375.

AOL Is Born

Tech enthusiasts may not remember the name Quantum Computer Sciences, but they sure remember the company itself, which changed its name to America Online, Inc. in 1991. Of course, most early internet users simply know it by the acronym AOL.

Quantum Computer Services launched its first instant messaging service in 1989. After going public as AOL in 1992, the company reached the 1-million-user mark by 1995. Within a year, its user base had expanded to 5 million.

During the dot-com bubble in 1999, AOL acquired both Moviefone and Netscape. AOL’s market cap peaked at $222 billion in December 1999.

In 2001, AOL merged with Time Warner, Inc. (NYSE: TWX) in a $350-billion deal that is often mentioned as being among the worst mergers in history.

Time Warner spun off AOL in 2009, and Verizon Communications, Inc. (NYSE: VZ) bought AOL’s remaining assets for $4.4 billion in 2015.

Related Links:

This Day In Market History: Netflix Goes Public

This Day In Market History: AOL-Time Warner Reports Record Losses

Photo by Thiago A./Wikimedia. 


Related Articles (TWX)

View Comments and Join the Discussion!

Posted-In: this day in market historyEducation Top Stories Tech General Best of Benzinga