Hulu CEO Jason Kilar Explains the AOL-Time Warner Merger (Video)

Courtesy of some inside knowledge from Hulu CEO Jason Kilar, we now know why the execs at Time Warner thought it was a good idea to allow their company to be purchased with bubble-inflated AOL stock a dozen years ago.

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They were high on drugs.

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Describing a scene from a technology conference that preceded the debacle that created AOL Time Warner, Kilar said Monday night: "I remember one time guys from AOL and Time Warner were there. They were out of their minds on homemade acid. Next thing you know, they wake up naked, in the middle of the desert. They don't know where they are, and their company is merged."

Obviously -- we think -- it's just a joke.

Kilar's revelation is made in a Funny or Die video that also stars Martha Stewart and an image of Facebook co-founder Mark Zuckerberg streaking.

The video opened the D: Dive Into Media conference Monday night at the Ritz-Carlton, Laguna Niguel. The conference, from the journalists at AllThingsD, runs through Tuesday and features presentations from News Corp. COO Chase Carey, Viacom CEO Philippe Dauman, ESPN president John Skipper, rocker Neil Young and more.

Watch the Funny or Die video below.