Aol Time Warner Merger

In 2000, AOL merged with Time Warner in a deal worth over$30 billion which was one of the largest mergers in American business history. The main reason for the merger was to deliver branded information, entertainment and communication services over rapidly converging media platforms. Before the merger AOL was one of the top internet service providers in the US and Time warner was one of the top Cable companies in The States.

According to the researchers the increased value results from an opportunity to utilize a specialized resources which arises solely as a result of the merger (Jensens & Ruback, 1983; Bradle, Desai and Kim , 1983). For creating operational and financial synergies managers believe that two enterprises will be worth more if merged than if operates as two separate entities. Thus, the two companies, A and B:

The main weakness of merging the two companies would be with the staff. There would be cultural changes, disengaged staff and moral decreases (Iveybusinessjournal.com, 2015). Reorganization would need to be done to

In a recent article by the Washington Post, Charter has recently acquired the rights to Time Warner Cable (TWC) in a $55 billion dollar deal (Kang). This comes a few weeks after Comcast, a close competitor withdrew it’s own merger deal after a potential. The article states that the merger between Charter and TWC creates a viable competitor to Comcast which currently has 40 percent of all broadband internet subscribers. With the merger the article states that the company New Charter, would have a 35 percent share of the current broadband market, compared to Comcast which would have had more than 50 percent.

AN example, in 2008, Hewlett Packet purchased Electronic Data Systems to enhance the services aspect of the partnering technology offerings (Yurko, 1996). Marketing networks now give companies much wider customer access including overnight services. One such merger is the Takeda Pharmaceutical Inc. Although distribution chains work great to increase the bottom line, these mergers are not well received by federal agencies like the Federal Trade Commission. The concern being monopolization which is when one company controls too much of a given industry. Another driver of mergers is a desire for a leadership change. Sometimes the owner of the high technology firms simply wants to sale out and has problems finding a successor within to take the helm. Hence, a merger holds an

When companies combine/merge the whole objective is to gain new opportunities, gain market share, grow the business, to become more innovative and to improve product offerings, utilizing/sharing the existing resources and data. From the case

In 1983 AOL began life in large part thanks to Bill Von Meister, and only had one product. In fact the company was first called Control Video Corporation. In 2015 as a company was sold to Verizon for 4.4 Billion. To say at the very least, AOL did something right as a corporation over the years. The first product they every came out with was called GameLine, which is a service that hooked your Atari 2600 to your phone line to rent games for 1 dollar (fastcompany). Not soon after it’s beginning, Control Video Corporation collapsed and over 90 % of its staffed were fired. However out of the ashes of Control Video Corporation, in 1985 Steve Case founded “Quantum

This paper will examine the proposed merger of two telecommunications companies: AT&T and T-Mobile. The purpose is to determine whether such a merger would be in the best interest of the telecommunications industry, as well as the consumers served by the industry. In order to adequately understand the environment contemplated by such a merger, this paper will examine the history of antitrust laws in the United States; with particular focus on the monopolies serving as a template for what would happen should the merger occur. Finally, the paper will make an assertion as to the advisedness of such a merger and provide evidence to support that assertion.

Kathryn, you make an interesting point that some mergers of technology companies fail due to incompatible systems, and clearly the AOL and Time Warner merger is an excellent example, but I believe the problem extends well beyond the these types of companies (Bradt, 2015). One of the key take-aways from that disastrous experiment was that in order to meet proposed synergies, organizations must become fully integrated. This level of integration involves IT and requires that IT management be “at the table” during key decision points.

Cultural trends are significant since they relate to the values practice within a society. Nonetheless, we live in a much more connected work, via social media, such as Facebook, Twitter etc. Moreover, we live in a multiplex work.

This paper will discuss how the American Telecom industry would have been impacted if AT&T and T-Mobile would have gone through with their merger. The Telecom is working every day to make itself better and with the increase in the uses of mobile-users, companies are doing their best to provide the best services for their customers. There are a lot of disadvantages of the growing number of customers though and that was the case when AT&T proposed to merge with T-Mobile.

The concern of the regulator will be to determine if the merger could raise or reduce the welfare of consumers. That is if the reduction in cost measured by the lower average cost would be sufficiently large relative to the rise in price, then the merger would improve welfare of consumers as cost saved will be greater than deadweight loss. But if the rise in price after the merger is sufficiently large relative to the reduction in average cost then the merger lowers welfare (deadweight loss).The antitrust authorities can determine if the merger would enhance welfare or not depending on how reacts to the merger. The goal of competitors is to determine whether the merged firm will provide quality or worse services compared to the combined premerger services provided by the firms engage in the merger. If the quality of services provided by the merged firms falls then competitors will be better off, since demand for their service is likely to increase. The increase in demand for the services of competitors induces them to provide more to the market, but on the net the total quality of service provided in the industry would falls creating higher prices, in that case the merger will not be challenge by the competitors. The higher price resulting from the merger reduces welfare as consumer surplus falls. On the other hand if the new firm provides better quality services

Two significant factors affected the post merger company. One, the dot-com burst meant adverse effect on AOL’s advertising revenues. And two, dial-up subscribers decreased thereby affecting revenues and overall profitability of AOL. A key element in the turnaround strategy should be to offer free content on its portal. This strategy will benefit AOL in attracting more online users and advertising revenues.

company and the industry is based on trends that are constantly changing to the next big hit.  The

Share holders suffered even more, as stock prices plummeted from the time the merger was first announced. A major part of the failure of this merger was the fact that developing a “learning culture” was never considered, and no strategic vision was created for the newly merged organizations. For example Time Warner Cable’s high speed Internet services, Road Runner, as part of its profitable cable operations was never integrated with AOL as Case explained in his 2005 article in the Washington Post (6/ 11/05: B01). The first AOL Time Warner Annual Report (2000) claimed that it was fostering “… a nimble, entrepreneurial culture that recognizes that it can only succeed if everyone supports the new organization based on a shared set of values and common goals.” Unfortunately, the team-work necessary to integrate the two companies never happened, because there was no shared strategic vision of what the merger should be, and where it would be going. Merger Failure and the Need for a Culture of Learning According to some estimates, 85% of merger failures are related to the mismanagement of cultural issues. Awareness of cultural differences is then seen as an issue of primary concern when organizations merge. According to Miller (2000:8): “Once you develop an understanding of the current culture, and have compared that with the goals of the merged