"Sorry but that isn't how economics works, cheatpark or cdu. Things don't always go your way. K-Mart is a classic example of how people thought a big corporation couldn't go bankrupt. K-mart also offers poor service and has a poor company structure like AOL Time Warner. Before you know it AOL Time Warner could be filing for bankruptcy. The company may not collapse, but it is given a specific amount of days to introduce reforms to cut the labor force. Sometimes when companies file for bankruptcy they break into two."
WEll. You seem to lack a partial understand of economics.... A one time "loss"(which AOL didn't really have) from a big corporation does not make a company go bankrupt. It has to be continuous, as Kmart kept losing money.
"Cdu, AOL sucks. It will never make a profit. People will go for the cheaper and better alternatives. Again something else you don't know about. People tend to choose the better and cheaper subsititutes, not the mainstream service. "
While that is what happens idealy, that does not always happen realistically. Explain why Windows is more widely used that Linux. Why McDonalds is larger than Burger King, Wendy's, etc? Why AOL has been the largest ISP for many years? People do choose the mainstream services usually because they don't know of many alternatives. That is not economics. That is called psychology. Most people will go to the product which is easiest to obtain without sacrificing the most.
'Before you talk I suggest you study economics because you can't make assumptions in this field, it just doesn't work that way."
I appears you are making the assumption they will go bankrupt because of this loss. Not anyone else.
"You know nothing about economics so quit talking. $54.2 Billion is about the GDP of a small country, so I wouldn't keep on talking anymore. Ignorance doesn't do any good."
Typical GC. Knows everything. And you called me a know it all in the past.
"Todd that isn't correct. Again, you must realized $54.2 Billion is about the size of the GDP of a small country. Again, you ignore the fact that these is a tremendous loss, and the company will have to reduce about 20-50% of its work force, which could possibly happen in the future to AOL/Time Warner. Again look at the facts."
The facts are that in accounting(this isn't economics), there is no defenitive science to documenting losses. However, there is a rule companies must report their loss of value in assets also. AOL did not lose 54.2 billion dollars. Their overall assets fell. You should know that after a merger, such things happen, as you claim to be an economics expert.
And another thing you may have overlooked. Even if AOL does goes bankrupt as your prophetically say they will
, there is a large chance that the US government will bail them out, as it will hurt the economy if a large corporation such as that falls under, which is doubtful it will in the first place.
