Time Warner :: essays research papers

In January 2000, AOL and succession Warner announced a record setting $166 Billion horse merger. Referred to as the Deal of the Century the talk immediately centered on the potential synergies the overbold ac confederacy would realize.Steve Case, announced as Chairman, championed the mood of AOL/Time Warner as the Wal-Mart of the media and entertainment industry a one-stop shop marketplace for advertisers to orbital cavity their audience. Case envisioned fully integrated advertising campaigns with bundled AOL/Time Warner products.The idea was simple enough through a single point of contact, a marketer like Pepsi could get product placement in a major event movie, run a sweepstakes promotion on the wind vane with the winner appearing in a Warner Brothers sitcom, sponsor a Warner practice of medicine artists concert tour and distri providede a bailiwick print and television branding campaign.Investors applauded.AOL/Time Warners scale & oscilloscope would give it a clear adv antage over stand unaccompanied competitors.Furthermore, with the integration of Time Warner, AOL, the leading ISP, with 40% of the US market, would be equal to(p) to differentiate its products with proprietary content from such established brands as quite a little Magazine and Sports Illustrated.Time Warner executives, in turn, saw AOL as a new distribution pipeline into consumer households that could be used to promote and extend their order of brands.The deal seemed to make sense for both sides.So what went wrong?The vainglorious question these days is Should Time Warner sell AOL? Is the company stronger together or apart? Over the past year, analysts, investors and company executives have grappled with this issue.Since it helps to understand a companys past when making a decision more or less its future, we have structured this presentation in the following format first-class honours degree we will briefly review AOL & Time Warners market positions as separate companies.Se cond we will cover the complex merger issues that touch on federal regulators.And third, we will take a look at the period of time directly following the mergers approval.Finally, once we have multi-color the full picture of the merger and its results, we will conclude with our recommendation for the companys future.Prior to merging with AOL, Time Warner, was itself the result of two victorious mega mergers. The first was in 1989 when Time-Life, a print media company, merged with Warner Communications, an entertainment company with interests in movies and music. This was subsequently followed up with the merger of food turner Broadcasting Systems, Ted Turners Atlanta based company with cable properties like trinitrotoluene and CNN. These two mergers had created a powerful, vertically and horizontally integrated media company but still, something was missing.