In Focus

Steve Case

If people who always seem to get what they want annoy you, I have a perfect Case in point. Steve Case that is, former Chief Executive Officer of America Online. Something about this guy just makes you think everything is under control. And it usually is. His control. His background is an interesting combination of down-to-earth wistfulness and I-don't-care-if-I'm-upper class. In other words, although he wanted for nothing, he didn't seem to notice. he was never arrogant or assuming. He preferred Hawaiian shirts and bare feet to stuffy suits and Gucci shoes. And those preferences haven't changed, even today.

Steve Case was an entrepreneur even as a young boy. He was forever on a mission to get something going. He would enlist his brother in his newest venture (usually a paper route) and see it through with success. During his years at Williams College in Massachusetts he became increasingly interested in a publication called Advertising Age, and he developed a total fascination with telecommunications. In a 1998 interview with Businessweek magazine, Steve Case said he majored in Political Science because it seemed like the closest thing to marketing. (Hmmm. marketing and telecommunications. throw in a modem and you've got mail!) Case saw potential in an industry essentially in its infancy. As you'll see, this ability would become a habit for him.

Right after college, Case worked for Pepsi-Co. and eventually ventured into the world of Pizza Hut. During his tenure with Pizza Hut he spent of lot of time on planes flying about the world trying to be the most innovative pizza-maker ever (tough job!). His evenings were often spent getting to know the Internet industry as a member of "The Source," one of the earliest online service providers. So the interest was already there when his brother (now a successful venture capitalist) mentioned a company he'd spotted at a Las Vegas Convention. Case quickly joined on with Control Video Corp., a company that provided Atari programs to personal computers. When that went under, he and Control Video's CEO, Jim Kimsey, began their own "Quantum Computer Services," which evolved into America Online.

AOL slowly moved its way up the ranks marketing itself with mass mailings. When things seemed to be at a standstill, AOL decided to find software to replace its browser. This was right around the time when Netscape was king and Steve Case was dying to wear its crown. Building Netscape into AOL seemed like a great fit. It was also when Microsoft Network (MSN) decided its main goal would be to see the immediate demise of America Online. This bitter rivalry would become well known in the industry, and Case knew his best chance to get beyond the genius Gates would be to show him up with Netscape.

But alas, this would turn out to be quite a challenge. By this point Microsoft, the world's largest software maker, was firmly ensconced in the browser market and Netscape's only true competitor. So when Case went to Netscape with a deal, Netscape got a little cocky. They thought that Case would never go to bed with Microsoft and therefore his only choice was Netscape. But David Cole, AOL's Internet head, and David Colburn, AOL's top deal-making executive, didn't give two hoots about the heat between Microsoft and AOL. If Microsoft had something to offer AOL in the way of a browser, well, that was their only concern. That's right, folks. The almighty Gates was just itching to get his foot in the AOL portal. Microsoft was used to being number one in whatever they did and they were now committed to browsers. Dangit, they were gonna be top dog in that area, too.

What a decision for the Steve-Meister. Go with your archenemy or sign on with the much hotter (in that area, anyway, at the time) Netscape? Seems like a no-brainer, right? Well, Chicky, that's why you're not in Steve Case's shoes. or should I say sandals. He surprised everyone in the world when he chose Microsoft as the primary browser partner over Netscape. Especially since only a couple of days before, AOL inked a deal to license Netscape Navigator client software technology for all its services and in turn, AOL would be a bold fixture on the Netscape website. (Netscape thought that meant exclusivity and that there would be NO deal with Microsoft and that together they would put the hurt on Gates & Co.) As I'd mentioned earlier, Netscape thought AOL couldn't do it without them. So in talks, they gave nothing (tsk, tsk); Microsoft gave everything. At the end of the day, Case knew that despite the head-butting in the MSN department, this deal was huge. He put the company's interests first and went with Microsoft. That deal was done in 1996. By 1999, America Online bought Netscape. for $9.8 billion.

But that was nothing. When you consider the next move made by America Online and Time Warner, it really pales in comparison. The merger between the world's largest Internet Company, AOL, and the gargantuan media empire of Time Warner, was truly the mother lode. The move, which literally sent shock waves through the world, makes nothing but incredible sense. Both companies needed to fulfill a need. AOL was concerned about the increasingly popular cable companies that were selling their "no wait" Internet service and Time Warner was terrified that digitally, they were in the dark ages. Pure utopia, they thought. Perfect Synergy.

There are always those Nay-Sayers out there, however, comparing Steve Case, now the Chairman of AOL Time Warner, to Big Brother. There are consumer groups who are saying "If you thought Microsoft was bad." And then there's me, who thinks that with the chutzpah and gumption of a determined and proven success story like Steve Case at the helm, we are likely to see incredible growth and groundbreaking advances at every turn. In Case's open letter to America Online members he said "AOL Time Warner will be both a laboratory of innovation and a leader in social responsibility -- dedicated to carrying on together the traditions each of our companies has long embraced: serving our millions of members, viewers, readers, listeners and subscribers, setting a standard for journalistic integrity and creative endeavor and engaging our assets, our energy and our passion to make a difference." I believe he can do that.

From bare-feet and paper routes to Chairman of the biggest media conglomerate in the world, Steve Case is The Man. He may get his newspapers delivered to him now, and his office might be bigger, but I bet if you look underneath his desk you'll see a pair of flip-flops.