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"Amazing Grace" is a Christian hymn published in 1779, written in 1772 by English Anglican clergyman and poet John Newton (1725–1807). It is an immensely popular hymn, particularly in the United States, where it is used for both religious and secular purposes. |
Newton wrote the words from personal experience; he grew up without any particular religious conviction, but his life's path was formed by a variety of twists and coincidences that were often put into motion by others' reactions to what they took as his recalcitrant insubordination. He was pressed into service with the Royal Navy, and after leaving the service, he became involved in the Atlantic slave trade. In 1748, a violent storm battered his vessel off the coast of County Donegal, Ireland, so severely that he called out to God for mercy. While this moment marked his spiritual conversion, he continued slave trading until 1754 or 1755, when he ended his seafaring altogether. Newton began studying Christian theology and later became an abolitionist. |
Ordained in the Church of England in 1764, Newton became the curate of Olney, Buckinghamshire, where he began to write hymns with poet William Cowper. "Amazing Grace" was written to illustrate a sermon on New Year's Day of 1773. It is unknown if there was any music accompanying the verses; it may have been chanted by the congregation. It debuted in print in 1779 in Newton's and Cowper's "Olney Hymns", but settled into relative obscurity in England. In the United States, "Amazing Grace" became a popular song used by Baptist and Methodist preachers as part of their evangelizing, especially in the American South, during the Second Great Awakening of the early 19th century. It has been associated with more than 20 melodies. In 1835, American composer William Walker set it to the tune known as "New Britain" in a shape note format; this is the version most frequently sung today. |
With the message that forgiveness and redemption are possible regardless of sins committed and that the soul can be delivered from despair through the mercy of God, "Amazing Grace" is one of the most recognisable songs in the English-speaking world. American historian Gilbert Chase writes that it is "without a doubt the most famous of all the folk hymns" and Jonathan Aitken, a Newton biographer, estimates that the song is performed about 10 million times annually. |
It has had particular influence in folk music, and has become an emblematic black spiritual. Its universal message has been a significant factor in its crossover into secular music. "Amazing Grace" became newly popular during the 1960s revival of American folk music, and it has been recorded thousands of times during and since the 20th century. |
John Newton's conversion. |
According to the "Dictionary of American Hymnology", "Amazing Grace" is John Newton's spiritual autobiography in verse. |
In 1725, Newton was born in Wapping, a district in London near the Thames. His father was a shipping merchant who was brought up as a Catholic but had Protestant sympathies, and his mother was a devout Independent, unaffiliated with the Anglican Church. She had intended Newton to become a clergyman, but she died of tuberculosis when he was six years old. For the next few years, while his father was at sea Newton was raised by his emotionally distant stepmother. He was also sent to boarding school, where he was mistreated. At the age of eleven, he joined his father on a ship as an apprentice; his seagoing career would be marked by headstrong disobedience. |
As a youth, Newton began a pattern of coming very close to death, examining his relationship with God, then relapsing into bad habits. As a sailor, he denounced his faith after being influenced by a shipmate who discussed with him "Characteristicks of Men, Manners, Opinions, Times", a book by the Third Earl of Shaftesbury. In a series of letters Newton later wrote, "Like an unwary sailor who quits his port just before a rising storm, I renounced the hopes and comforts of the Gospel at the very time when every other comfort was about to fail me." His disobedience caused him to be pressed into the Royal Navy, and he took advantage of opportunities to overstay his leave. |
He deserted the navy to visit Mary "Polly" Catlett, a family friend with whom he had fallen in love. After enduring humiliation for deserting, he was traded as crew to a slave ship. |
He began a career in slave trading. |
Newton often openly mocked the captain by creating obscene poems and songs about him, which became so popular that the crew began to join in. His disagreements with several colleagues resulted in his being starved almost to death, imprisoned while at sea, and chained like the slaves they carried. He was himself enslaved by the Sherbro and forced to work on a plantation in Sierra Leone near the Sherbro River. After several months he came to think of Sierra Leone as his home, but his father intervened after Newton sent him a letter describing his circumstances, and crew from another ship happened to find him. Newton claimed the only reason he left Sierra Leone was because of Polly. |
About two weeks later, the battered ship and starving crew landed in Lough Swilly, Ireland. For several weeks before the storm, Newton had been reading "The Christian's Pattern", a summary of the 15th-century "The Imitation of Christ" by Thomas à Kempis. The memory of his own "Lord have mercy upon us!" uttered during a moment of desperation in the storm did not leave him; he began to ask if he was worthy of God's mercy or in any way redeemable. Not only had he neglected his faith but directly opposed it, mocking others who showed theirs, deriding and denouncing God as a myth. He came to believe that God had sent him a profound message and had begun to work through him. |
Newton's conversion was not immediate, but he contacted Polly's family and announced his intention to marry her. Her parents were hesitant as he was known to be unreliable and impetuous. They knew he was profane too but allowed him to write to Polly, and he set to begin to submit to authority for her sake. He sought a place on a slave ship bound for Africa, and Newton and his crewmates participated in most of the same activities he had written about before; the only immorality from which he was able to free himself was profanity. After a severe illness his resolve was renewed, yet he retained the same attitude towards slavery as was held by his contemporaries. Newton continued in the slave trade through several voyages where he sailed the coasts of Africa, now as a captain, and procured slaves being offered for sale in larger ports, transporting them to North America. |
In between voyages, he married Polly in 1750, and he found it more difficult to leave her at the beginning of each trip. After three shipping voyages in the slave trade, Newton was promised a position as ship's captain with cargo unrelated to slavery. But at the age of thirty, he collapsed and never sailed again. |
Working as a customs agent in Liverpool starting in 1756, Newton began to teach himself Latin, Greek, and theology. He and Polly immersed themselves in the church community, and Newton's passion was so impressive that his friends suggested he become a priest in the Church of England. He was turned down by John Gilbert, Archbishop of York, in 1758, ostensibly for having no university degree, although the more likely reasons were his leanings toward evangelism and tendency to socialise with Methodists. Newton continued his devotions, and after being encouraged by a friend, he wrote about his experiences in the slave trade and his conversion. William Legge, 2nd Earl of Dartmouth, impressed with his story, sponsored Newton for ordination by John Green, Bishop of Lincoln, and offered him the curacy of Olney, Buckinghamshire, in 1764. |
Partly from Cowper's literary influence, and partly because learned vicars were expected to write verses, Newton began to try his hand at hymns, which had become popular through the language, made plain for common people to understand. Several prolific hymn writers were at their most productive in the 18th century, including Isaac Watts whose hymns Newton had grown up hearing and Charles Wesley, with whom Newton was familiar. Wesley's brother John, the eventual founder of the Methodist Church, had encouraged Newton to go into the clergy. Watts was a pioneer in English hymn writing, basing his work after the Psalms. The most prevalent hymns by Watts and others were written in the common meter in 8.6.8.6: the first line is eight syllables and the second is six. |
Newton and Cowper attempted to present a poem or hymn for each prayer meeting. The lyrics to "Amazing Grace" were written in late 1772 and probably used in a prayer meeting for the first time on 1 January 1773. A collection of the poems Newton and Cowper had written for use in services at Olney was bound and published anonymously in 1779 under the title "Olney Hymns". Newton contributed 280 of the 348 texts in "Olney Hymns"; "1 Chronicles 17:16–17, Faith's Review and Expectation" was the title of the poem with the first line "Amazing grace! (how sweet the sound)". |
William Phipps in the "Anglican Theological Review" and author James Basker have interpreted the first stanza of "Amazing Grace" as evidence of Newton's realisation that his participation in the slave trade was his wretchedness, perhaps representing a wider common understanding of Newton's motivations. Newton joined forces with William Wilberforce, the British Member of Parliament who led the Parliamentarian campaign to abolish the slave trade in the British Empire, culminating in the Slave Trade Act 1807. But Newton did not become an ardent and outspoken abolitionist until after he left Olney in the 1780s; he is not known to have connected writing the hymn known as "Amazing Grace" to anti-slavery sentiments. |
The lyrics in "Olney Hymns" were arranged by their association to the Biblical verses that would be used by Newton and Cowper in their prayer meetings, and did not address any political objective. For Newton, the beginning of the year was a time to reflect on one's spiritual progress. At the same time he completed a diary which has since been lost that he had begun 17 years before, two years after he quit sailing. The last entry of 1772 was a recounting of how much he had changed since then. |
The title ascribed to the hymn, "1 Chronicles 17:16–17", refers to David's reaction to the prophet Nathan telling him that God intends to maintain his family line forever. Some Christians interpret this as a prediction that Jesus Christ, as a descendant of David, was promised by God as the salvation for all people. Newton's sermon on that January day in 1773 focused on the necessity to express one's gratitude for God's guidance, that God is involved in the daily lives of Christians though they may not be aware of it, and that patience for deliverance from the daily trials of life is warranted when the glories of eternity await. Newton saw himself a sinner like David who had been chosen, perhaps undeservedly, and was humbled by it. According to Newton, unconverted sinners were "blinded by the god of this world" until "mercy came to us not only undeserved but undesired ... our hearts endeavored to shut him out till he overcame us by the power of his grace." |
The sermon preached by Newton was his last of those that William Cowper heard in Olney, since Cowper's mental instability returned shortly thereafter. One author suggests Newton may have had his friend in mind, employing the themes of assurance and deliverance from despair for Cowper's benefit. |
More than 60 of Newton and Cowper's hymns were republished in other British hymnals and magazines, but "Amazing Grace" was not, appearing only once in a 1780 hymnal sponsored by the Countess of Huntingdon. Scholar John Julian commented in his 1892 "A Dictionary of Hymnology" that outside of the United States, the song was unknown and it was "far from being a good example of Newton's finest work". Between 1789 and 1799, four variations of Newton's hymn were published in the US in Baptist, Dutch Reformed, and Congregationalist hymnodies; by 1830 Presbyterians and Methodists also included Newton's verses in their hymnals. |
"Amazing Grace", with the words written by Newton and joined with "New Britain", the melody most currently associated with it, appeared for the first time in Walker's shape note tunebook "Southern Harmony" in 1847. It was, according to author Steve Turner, a "marriage made in heaven ... The music behind 'amazing' had a sense of awe to it. The music behind 'grace' sounded graceful. There was a rise at the point of confession, as though the author was stepping out into the open and making a bold declaration, but a corresponding fall when admitting his blindness." Walker's collection was enormously popular, selling about 600,000 copies all over the US when the total population was just over 20 million. Another shape note tunebook named "The Sacred Harp" (1844) by Georgia residents Benjamin Franklin White and Elisha J. King became widely influential and continues to be used. |
Another verse was first recorded in Harriet Beecher Stowe's immensely influential 1852 anti-slavery novel "Uncle Tom's Cabin". Three verses were emblematically sung by Tom in his hour of deepest crisis. He sings the sixth and fifth verses in that order, and Stowe included another verse, not written by Newton, that had been passed down orally in African-American communities for at least 50 years. It was one of between 50 and 70 verses of a song titled "Jerusalem, My Happy Home", which was first published in a 1790 book called "A Collection of Sacred Ballads": |
Although "Amazing Grace" set to "New Britain" was popular, other versions existed regionally. Primitive Baptists in the Appalachian region often used "New Britain" with other hymns, and sometimes sing the words of "Amazing Grace" to other folk songs, including titles such as "In the Pines", "Pisgah", "Primrose", and "Evan", as all are able to be sung in common meter, of which the majority of their repertoire consists. In the late 19th century, Newton's verses were sung to a tune named "Arlington" as frequently as to "New Britain" for a time. |
With the advent of recorded music and radio, "Amazing Grace" began to cross over from primarily a gospel standard to secular audiences. The ability to record combined with the marketing of records to specific audiences allowed "Amazing Grace" to take on thousands of different forms in the 20th century. Where Edwin Othello Excell sought to make the singing of "Amazing Grace" uniform throughout thousands of churches, records allowed artists to improvise with the words and music specific to each audience. AllMusic lists over 1,000 recordings – including re-releases and compilations – as of 2019. Its first recording is an a cappella version from 1922 by the Sacred Harp Choir. |
It was included from 1926 to 1930 in Okeh Records' catalogue, which typically concentrated strongly on blues and jazz. Demand was high for black gospel recordings of the song by H. R. Tomlin and J. M. Gates. A poignant sense of nostalgia accompanied the recordings of several gospel and blues singers in the 1940s and 1950s who used the song to remember their grandparents, traditions, and family roots. It was recorded with musical accompaniment for the first time in 1930 by Fiddlin' John Carson, although to another folk hymn named "At the Cross", not to "New Britain". "Amazing Grace" is emblematic of several kinds of folk music styles, often used as the standard example to illustrate such musical techniques as lining out and call and response, that have been practised in both black and white folk music. |
In 1972, the Royal Scots Dragoon Guards, the senior Scottish regiment of the British Army, recorded an instrumental version featuring a bagpipe soloist accompanied by a pipe band. The tempo of their arrangement was slowed to allow for the bagpipes, but it was based on Collins's: it began with a bagpipe solo introduction similar to her lone voice, then it was accompanied by the band of bagpipes and horns, whereas in her version she is backed up by a chorus. It became an international hit, spending five weeks at number-one in the UK Singles Chart, topping the "RPM" national singles chart in Canada for three weeks, and also peaking at number 11 on the Billboard Hot 100 in the US. It is also a controversial instrumental, as it combined pipes with a military band. The Pipe Major of the Royal Scots Dragoon Guards was summoned to Edinburgh Castle and chastised for demeaning the bagpipes. |
Aretha Franklin and Rod Stewart also recorded "Amazing Grace" around the same time, and both of their renditions were popular. All four versions were marketed to distinct types of audiences, thereby assuring its place as a pop song. Johnny Cash recorded it on his 1975 album "Sings Precious Memories", dedicating it to his older brother Jack, who had been killed in a mill accident when they were boys in Dyess, Arkansas. Cash and his family sang it to themselves while they worked in the cotton fields following Jack's death. Cash often included the song when he toured prisons, saying "For the three minutes that song is going on, everybody is free. It just frees the spirit and frees the person." |
The U.S. Library of Congress has a collection of 3,000 versions of and songs inspired by "Amazing Grace", some of which were first-time recordings by folklorists Alan and John Lomax, a father and son team who in 1932 travelled thousands of miles across the southern states of the US to capture the different regional styles of the song. More contemporary renditions include samples from such popular artists as Sam Cooke and the Soul Stirrers (1963), the Byrds (1970), Elvis Presley (1971), Skeeter Davis (1972), Mighty Clouds of Joy (1972), Amazing Rhythm Aces (1975), Willie Nelson (1976) and the Lemonheads (1992). |
In American popular culture. |
"Amazing Grace" is an icon in American culture that has been used for a variety of secular purposes and marketing campaigns. It is referenced in the 2006 film "Amazing Grace", which highlights Newton's influence on the leading British abolitionist William Wilberforce, in the film biography of Newton, "Newton's Grace", and the 2014 film "Freedom" which tells the story of Newton's composition of the hymn. |
Since 1954, when an organ instrumental of "New Britain" became a best-seller, "Amazing Grace" has been associated with funerals and memorial services. The hymn has become a song that inspires hope in the wake of tragedy, becoming a sort of "spiritual national anthem" according to authors Mary Rourke and Emily Gwathmey. For example, President Barack Obama recited and later sang the hymn at the memorial service for Clementa Pinckney, who was one of the nine victims of the Charleston church shooting in 2015. |
Modern interpretations. |
Due to its immense popularity and iconic nature, the meaning behind the words of "Amazing Grace" has become as individual as the singer or listener. Bruce Hindmarsh suggests that the secular popularity of "Amazing Grace" is due to the absence of any mention of God in the lyrics until the fourth verse (by Excell's version, the fourth verse begins "When we've been there ten thousand years"), and that the song represents the ability of humanity to transform itself instead of a transformation taking place at the hands of God. "Grace", however, had a clearer meaning to John Newton, as he used the word to represent God or the power of God. |
The transformative power of the song was investigated by journalist Bill Moyers in a documentary released in 1990. Moyers was inspired to focus on the song's power after watching a performance at Lincoln Center, where the audience consisted of Christians and non-Christians, and he noticed that it had an equal impact on everybody in attendance, unifying them. James Basker also acknowledged this force when he explained why he chose "Amazing Grace" to represent a collection of anti-slavery poetry: "there is a transformative power that is applicable ... : the transformation of sin and sorrow into grace, of suffering into beauty, of alienation into empathy and connection, of the unspeakable into imaginative literature." |
The "Dictionary of American Hymnology" claims it is included in more than a thousand published hymnals, and recommends its use for "occasions of worship when we need to confess with joy that we are saved by God's grace alone; as a hymn of response to forgiveness of sin or as an assurance of pardon; as a confession of faith or after the sermon". |
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AOL (stylized as Aol., formerly a company known as AOL Inc. and originally known as America Online) is an American web portal and online service provider based in New York City. It is a brand marketed by Yahoo! Inc. |
The service traces its history to an online service known as PlayNET. PlayNET licensed its software to Quantum Link (Q-Link), that went online in November 1985. A new IBM PC client was launched in 1988, and eventually renamed as America Online in 1989. AOL grew to become the largest online service, displacing established players like CompuServe and The Source. By 1995, AOL had about three million active users. |
AOL was one of the early pioneers of the Internet in the 1990s and was (at one point) the most recognized brand on the web in the United States. AOL once provided a dial-up internet service to millions of Americans and pioneered instant messaging and chat rooms with AOL Instant Messanger (AIM). In 1998, AOL purchased Netscape for US$4.2 billion. By 2000, AOL was providing internet service to over 20 million consumers, dominating the market of internet service providers (ISPs). In 2001, at the height of its popularity, it purchased the media conglomerate Time Warner in the largest merger in U.S. history. AOL rapidly shrank thereafter, partly due to the decline of dial-up and rise of broadband. AOL was eventually spun off from Time Warner in 2009, with Tim Armstrong appointed the new CEO. Under his leadership, the company invested in media brands and advertising technologies. |
On June 23, 2015, AOL was acquired by Verizon Communications for $4.4 billion. On May 3, 2021, Verizon announced it would sell Yahoo and AOL to private equity firm Apollo Global Management for $5 billion. On September 1, 2021, AOL became part of the new Yahoo! Inc. |
1983–1991: early years. |
AOL began in 1983, as a short-lived venture called Control Video Corporation (CVC), founded by William von Meister. Its sole product was an online service called GameLine for the Atari 2600 video game console, after von Meister's idea of buying music on demand was rejected by Warner Bros. Subscribers bought a modem from the company for $49.95 and paid a one-time $15 setup fee. GameLine permitted subscribers to temporarily download games and keep track of high scores, at a cost of $1 per game. The telephone disconnected and the downloaded game would remain in GameLine's Master Module and playable until the user turned off the console or downloaded another game. |
In January 1983, Steve Case was hired as a marketing consultant for Control Video on the recommendation of his brother, investment banker Dan Case. In May 1983, Jim Kimsey became a manufacturing consultant for Control Video, which was near bankruptcy. Kimsey was brought in by his West Point friend Frank Caufield, an investor in the company. In early 1985, von Meister left the company. |
On May 24, 1985, Quantum Computer Services, an online services company, was founded by Kimsey from the remnants of Control Video, with Kimsey as chief executive officer, and Marc Seriff as chief technology officer. The technical team consisted of Seriff, Tom Ralston, Ray Heinrich, Steve Trus, Ken Huntsman, Janet Hunter, Dave Brown, Craig Dykstra, Doug Coward, and Mike Ficco. In 1987, Case was promoted again to executive vice-president. Kimsey soon began to groom Case to take over the role of CEO, which he did when Kimsey retired in 1991. |
From the beginning, AOL included online games in its mix of products; many classic and casual games were included in the original PlayNet software system. The company introduced many innovative online interactive titles and games, including: |
1991–2006: Internet age, Time Warner merger. |
In February 1991, AOL for DOS was launched using a GeoWorks interface; it was followed a year later by AOL for Windows. This coincided with growth in pay-based online services, like Prodigy, CompuServe, and GEnie. 1991 also saw the introduction of an original Dungeons & Dragons title called "Neverwinter Nights" from Stormfront Studios; which was one of the first Multiplayer Online Role Playing Games to depict the adventure with graphics instead of text. |
AOL launched services with the National Education Association, the American Federation of Teachers, "National Geographic", the Smithsonian Institution, the Library of Congress, Pearson, Scholastic, ASCD, NSBA, NCTE, Discovery Networks, Turner Education Services (CNN Newsroom), NPR, The Princeton Review, Stanley Kaplan, Barron's, Highlights for Kids, the U.S. Department of Education, and many other education providers. AOL offered the first real-time homework help service (the Teacher Pager—1990; prior to this, AOL provided homework help bulletin boards), the first service by children, for children (Kids Only Online, 1991), the first online service for parents (the Parents Information Network, 1991), the first online courses (1988), the first omnibus service for teachers (the Teachers' Information Network, 1990), the first online exhibit (Library of Congress, 1991), the first parental controls, and many other online education firsts. |
AOL purchased search engine WebCrawler in 1995, but sold it to Excite the following year; the deal made Excite the sole search and directory service on AOL. After the deal closed in March 1997, AOL launched its own branded search engine, based on Excite, called NetFind. This was renamed to AOL Search in 1999. |
AOL charged its users an hourly fee until December 1996, when the company changed to a flat monthly rate of $19.95. During this time, AOL connections were flooded with users trying to connect, and many canceled their accounts due to constant busy signals. A commercial was made featuring Steve Case telling people AOL was working day and night to fix the problem. Within three years, AOL's user base grew to 10 million people. In 1995, AOL was headquartered at 8619 Westwood Center Drive in the Tysons Corner CDP in unincorporated Fairfax County, Virginia, near the Town of Vienna. |
AOL was quickly running out of room in October 1996 for its network at the Fairfax County campus. In mid-1996, AOL moved to 22000 AOL Way in Dulles, unincorporated Loudoun County, Virginia to provide room for future growth. In a five-year landmark agreement with the most popular operating system, AOL was bundled with Windows software. |
On March 31, 1996, the short-lived eWorld was purchased by AOL. In 1997, about half of all U.S. homes with Internet access had it through AOL. During this time, AOL's content channels, under Jason Seiken, including News, Sports, and Entertainment, experienced their greatest growth as AOL become the dominant online service internationally with more than 34 million subscribers. In November 1998, AOL announced it would acquire Netscape, best known for their web browser, in a major $4.2 billion deal. The deal closed on March 17, 1999. Another large acquisition in December 1999 was that of MapQuest, for $1.1 billion. |
In 2004, along with the launch of AOL 9.0 Optimized, AOL also made available the option of personalized greetings which would enable the user to hear his or her name while accessing basic functions and mail alerts, or while logging in or out. In 2005, AOL broadcast the Live 8 concert live over the Internet, and thousands of users downloaded clips of the concert over the following months. In late 2005, AOL released AOL Safety & Security Center, a bundle of McAfee Antivirus, CA anti-spyware, and proprietary firewall and phishing protection software. News reports in late 2005 identified companies such as Yahoo!, Microsoft, and Google as candidates for turning AOL into a joint venture. Those plans were abandoned when it was revealed on December 20, 2005, that Google would purchase a 5% share of AOL for $1 billion. |
2006–2009: rebranding and decline. |
On April 3, 2006, AOL announced that it would retire the full name America Online. The official name of the service became AOL, and the full name of the Time Warner subdivision became AOL LLC. On June 8, 2006, AOL offered a new program called AOL Active Security Monitor, a diagnostic tool to monitor and rate PC security status, and recommended additional security software from AOL or Download.com. Two months later, AOL released AOL Active Virus Shield, a free product developed by Kaspersky Lab, that did not require an AOL account, only an internet email address. The ISP side of AOL UK was bought by Carphone Warehouse in October 2006 to take advantage of its 100,000 LLU customers, making Carphone Warehouse the largest LLU provider in the UK. |
In August 2006, AOL announced that it would offer email accounts and software previously available only to its paying customers, provided that users accessed AOL or AOL.com through an access method not owned by AOL (otherwise known as "third party transit", "bring your own access" or "BYOA"). The move was designed to reduce costs associated with the "walled garden" business model by reducing usage of AOL-owned access points and shifting members with high-speed internet access from client-based usage to the more lucrative advertising provider AOL.com. The change from paid to free access was also designed to slow the rate at which members canceled their accounts and defected to Microsoft Hotmail, Yahoo! or other free email providers. The other free services included: |
Also in August, AOL informed its U.S. customers of an increase in the price of its dial-up access to $25.90. The increase was part of an effort to migrate the service's remaining dial-up users to broadband, as the increased price was the same as that of its monthly DSL access. However, AOL subsequently began offering unlimited dial-up access for $9.95 a month. |
On November 16, 2006, Randy Falco succeeded Jonathan Miller as CEO. In December 2006, AOL closed its last remaining call center in the United States, "taking the America out of America Online," according to industry pundits. Service centers based in India and the Philippines continue to provide customer support and technical assistance to subscribers. |
On September 17, 2007, AOL announced the relocation of one of its corporate headquarters from Dulles, Virginia to New York City and the combination of its advertising units into a new subsidiary called Platform A. This action followed several advertising acquisitions, most notably Advertising.com, and highlighted the company's new focus on advertising-driven business models. AOL management stressed that "significant operations" would remain in Dulles, which included the company's access services and modem banks. |
In October 2007, AOL announced the relocation of its other headquarters from Loudoun County, Virginia to New York City, while continuing to operate its Virginia offices. As part of the move to New York and the restructuring of responsibilities at the Dulles headquarters complex after the Reston move, Falco announced on October 15, 2007, plans to lay off 2,000 employees worldwide by the end of 2007, beginning "immediately." The result was a layoff of approximately 40% of AOL's employees. Most compensation packages associated with the October 2007 layoffs included a minimum of 120 days of severance pay, 60 of which were offered in lieu of the 60-day advance notice requirement by provisions of the 1988 federal WARN Act. |
By November 2007, AOL's customer base had been reduced to 10.1 million subscribers, slightly more than the number of subscribers of Comcast and AT&T Yahoo!. According to Falco, as of December 2007, the conversion rate of accounts from paid access to free access was more than 80%. |
On January 3, 2008, AOL announced the closing of its Reston, Virginia data center, which was sold to CRG West. On February 6, Time Warner CEO Jeff Bewkes announced that Time Warner would divide AOL's internet-access and advertising businesses, with the possibility of later selling the internet-access division. |
On March 13, 2008, AOL purchased the social networking site Bebo for $850 million (£417 million). On July 25, AOL announced that it was shuttering Xdrive, AOL Pictures and BlueString to save on costs and focus on its core advertising business. AOL Pictures was closed on December 31. On October 31, AOL Hometown (a web-hosting service for the websites of AOL customers) and the AOL Journal blog hosting service were eliminated. |
2009–2015: As a digital media company. |
On March 12, 2009, Tim Armstrong, formerly with Google, was named chairman and CEO of AOL. On May 28, Time Warner announced that it would position AOL as an independent company after Google's shares ceased at the end of the fiscal year. On November 23, AOL unveiled a new brand identity with the wordmark "Aol." superimposed onto canvases created by commissioned artists. The new identity, designed by Wolff Olins, was integrated with all of AOL's services on December 10, the date upon which AOL traded independently for the first time since the Time Warner merger on the New York Stock Exchange under the symbol AOL. |
On April 6, 2010, AOL announced plans to shutter or sell Bebo. On June 16, the property was sold to Criterion Capital Partners for an undisclosed amount, believed to be approximately $10 million. In December, AIM eliminated access to AOL chat rooms, noting a marked decline in usage in recent months. |
Under Armstrong's leadership, AOL followed a new business direction marked by a series of acquisitions. It announced the acquisition of Patch Media, a network of community-specific news and information sites focused on towns and communities. On September 28, 2010, at the San Francisco TechCrunch Disrupt Conference, AOL signed an agreement to acquire TechCrunch. On December 12, 2010, AOL acquired about.me, a personal profile and identity platform, four days after the platform's public launch. |
On January 31, 2011, AOL announced the acquisition of European video distribution network goviral. In March 2011, AOL acquired "HuffPost" for $315 million. Shortly after the acquisition was announced, "Huffington Post" co-founder Arianna Huffington replaced AOL content chief David Eun, assuming the role of president and editor-in-chief of the AOL Huffington Post Media Group. On March 10, AOL announced that it would cut approximately 900 workers following the "HuffPost" acquisition. |
On September 14, 2011, AOL formed a strategic ad-selling partnership with two of its largest competitors, Yahoo and Microsoft. The three companies would begin selling inventory on each others' sites. The strategy was designed to help the companies compete with Google and advertising networks. |
On February 28, 2012, AOL partnered with PBS to launch MAKERS, a digital documentary series focusing on high-achieving women in industries perceived as male-dominated such as war, comedy, space, business, Hollywood and politics. Subjects for MAKERS episodes have included Oprah Winfrey, Hillary Clinton, Sheryl Sandberg, Martha Stewart, Indra Nooyi, Lena Dunham and Ellen DeGeneres. |
On March 15, 2012, AOL announced the acquisition of Hipster, a mobile photo-sharing app, for an undisclosed amount. On April 9, 2012, AOL announced a deal to sell 800 patents to Microsoft for $1.056 billion. The deal included a perpetual license for AOL to use the patents. |
In April, AOL took several steps to expand its ability to generate revenue through online video advertising. The company announced that it would offer gross rating point (GRP) guarantee for online video, mirroring the television-ratings system and guaranteeing audience delivery for online-video advertising campaigns bought across its properties. This announcement came just days before the Digital Content NewFront (DCNF) a two-week event held by AOL, Google, Hulu, Microsoft, Vevo and Yahoo to showcase the participating sites' digital video offerings. The DCNF was conducted in advance of the traditional television upfronts in the hope of diverting more advertising money into the digital space. On April 24, the company launched the AOL On network, a single website for its video output. |
In February 2013, AOL reported its fourth quarter revenue of $599.5 million, its first growth in quarterly revenue in eight years. |
In August 2013, Armstrong announced that Patch Media would scale back or sell hundreds of its local news sites. Not long afterward, layoffs began, with up to 500 out of 1,100 positions initially impacted. On January 15, 2014, Patch Media was spun off, and majority ownership was held by Hale Global. By the end of 2014, AOL controlled 0.74% of the global advertising market, well behind industry leader Google's 31.4%. |
On January 23, 2014, AOL acquired Gravity, a software startup that tracked users' online behavior and tailored ads and content based on their interests, for $83 million. The deal, which included approximately 40 Gravity employees and the company's personalization technology, was Armstrong's fourth-largest deal since taking command in 2009. Later that year, AOL acquired Vidible, a company that developed technology to help websites run video content from other publishers, and help video publishers sell their content to these websites. The deal, which was announced December 1, 2014, was reportedly worth roughly $50 million. |
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