Aol And Time Warner Merger Essay

939 words - 4 pages

Merger MadnessHow can multi-million dollar companies make themselves larger than they already are? Simple, they merge with another giant to make a super giant. Sounds easy, but it doesn't always work out profitable. January 2000 was the month of one of the biggest mergers between two large-scale media companies, America Online and Time Warner. Was a merger the best move for Steve Case of AOL and Gerald Levin of Time Warner? Or will it fail and both super powers will be laid to rest?Before merging with AOL, Time Warner was a powerhouse in itself. It owned such companies as CNN, Turner Broadcasting, Home Box Office (HBO), Time Inc., Time Warner Cable, Warner Brothers, and New Line Cinema. It ...view middle of the document...

was a profitable company and they were considered media giants.America Online, the other half of the merger, was a Internet Service Provider (ISP) giant in itself. Founded in 1985 by Steve Case and Jim Kimsey, Quantum Computer Services, the predecessor to AOL, provides online information and other services via PC modems to consumers. Then in 1989, Quantum Computer Services' changed to America Online and service began. The service offered e-mail, games, discussion forums, and chatrooms. The company exploded, becoming the number one ISP company by 1994, only 5 years after becoming public. AOL expanded its services internationally in 1995, providing service to Europe and Canada. Increasing exponentially each year, AOL reached 27 million subscribers in 2000, averaging a new member every 6 seconds.Both American Online and Time Warner were profitable organizations on their own. At June 30, 2000, America Online had earned $6.484 billion in online revenues for the 4 quarters prior to this date. This ranked them number one above all other online companies, beating out such companies as Charles Schwab & Co., Yahoo.com, E*Trade Group, as well as others. Also, America Online Inc. had a total of 25.1 million users of their online chat and instant messaging by July 24, 2000, nearly 92% of all chat and instant message users. These numbers also suggest that America Online was a very successful company before its merger.After the merger of AOL and Time Warner, the media industry greatly consolidated. AOL, the ISP superior, and Time Warner, a powerhouse in motion pictures; television; music; and journalism, consolidated the media into one company that is...

Find Another Essay On AOL And Time Warner Merger

AOL Time Warner On Essay

1562 words - 6 pages AOL Time Warner OnJanuary 10, 2000, one of the largest, most powerful mergers was announced to the world. Media giant Time Warner will join forces with the Internet superstar,America on Line. The $183 billion dollar deal is the biggest in history. In the recent past, there has been a wave of merger-mania, both in the United States and in Europe. The merger of the Millennium is between America on Line and TimeWarner. The AOL Time Warner deal

AOL Time Warner and Harley Davidson

881 words - 4 pages AOL Time Warner: Deal of the Century Turns into Disaster of a Lifetime (Bovée/ThillMescon, 2007)AOL acquired larger Time Warner in 2001, in a merger valued at over $180 billion (USD) and tagged the “deal of the century”. The merger was the first between a traditional media giant and a new media-internet giant and had a significant impact on a variety of different industries including e-commerce, magazine publishing, music and

Aol, Time Warner Case Study

713 words - 3 pages Warner (AOL TW). This merger was valued at $156Billion and was one of the largest ever.This merger took over a year to close. They had to deal with a range of difficult antitrust issues. Then AOL's shares dropped from $68 to $47 this was due to the economy. (Yang 2000 pg 36-38)The best strength they had was, when they merged together they created a business that was into a vast majority of small business. Time Warner was a vertical company that

Comcast and Time Warner Cable Merger

662 words - 3 pages Most everyone subscribes to some type of cable service. When Comcast announced plans to merge with Time Warner Cable back in February, Congress was quick to criticize the deal (Popelka). Many members of Congress were not in favor of the merger, and rumors of an antitrust review were imminent (Popelka). "This is a great example of how U.S. antitrust policy has turned into a political game"( Popelka). Politicians may gain supporters, but no one is

America Online , AOL. Worth your time and money

609 words - 2 pages You have probably heard of the Internet, but you weren't really sure if it was for you. You thought about it, but after all it costs so much and things like pornography and improper language are used everywhere, right? Wrong! Perhaps, I can convince you that America Online will be worth your time and money.One of the main reasons that people don't go online is that they think that it costs too much. America Online or AOL doesn't really cost all

Exploring the Digital Age

4268 words - 17 pages created by it. However, AOL made significant steps to acquire Time Warner, and through its strategic moves, it has shown clearly that it understands the significance of the emerging Internet technology. The merger of AOL Time Warner is still currently in the process of being fulfilled. Through the analysis done of the merger, and of the individual organization and their past mergers, it is likely that the AOL Time Warner merger will, in time, prove

Time Warner: The Impacts of Acquiring Fox News

1573 words - 6 pages Time Warner to its news network line-up. The impact of complementaries, creations of anti-trusts, and the actually of a synergy taking place between CNN and Fox News. Introduction In January 2000, Time Warner, Inc. (TW) announced its plans to merge with America Online (AOL) and upon completion in 2001, it had become the largest merger in U.S. corporate history. AOL had a pre-merger value of $163 billion and Time Warner had a preannouncement

Newell Company: The Rubbermaid Opportunity

1303 words - 6 pages that one should do something that they know best or have experience in and not pursue a totally different market in which that have no experience in. In this case, Newell does not have any experience with acquiring a company that is worth billions. A merger example that recently occurred which has turned into a blunder is the AOL Time Warner merger. These were two totally different companies in different industries that thought they could merge and

AOL Latin America David T.A. Wesley; Henry W. Lane; Nicholas Athanassiou

2198 words - 9 pages -house team. AOL-LA has entered into regional agreements with various content providers, including Hollywood.com and LatinStocks.com, as well as several Time-Warner companies, such as Turner Broadcasting (including CNNEspañol.com, CNNBrasil.com, CartoonNetwork.com, and TNTLA.com), and Time Inc. (including Portuguese and Spanish versions of Time and Fortune magazines). Anchor tenants' content is prominently displayed in fixed locations on

The "Sweet Spot" Of The Telecommunication Industry

1820 words - 7 pages diverse advertising restrictions among networks and a lack of statistical information about cable audiences, compared to that of broadcast (#1, p. 184).Profitability Revenues for the two major cable systems, AOL Time Warner Cable and AT&T Broadband don't seemed to be hindered by the recent threats to profits posed by the quickly emerging satellite industry. At the

Econimics-Merger between AOL a

1780 words - 7 pages products for both internal and external use. Thus, in this case the merged company will also benefit from economies of scale. AOL will be able to use both Netscape and AOL products (for example, Netscape Navigator and ICQ) to promote its current and upcoming products, and thus enhance its customer base. Netscape's Netcenter portal will also broaden AOL's global audience at home and at work.The proposed merger will advance AOL's multiple-brand

Similar Essays

Time Warner And Aol Merger Essay

1518 words - 6 pages Time Warner and AOL Merger Time Warner Corporation has numerous subsidiaries which are moving media materials across media boundaries. They are doing this in numerous ways, based on synergies and joint ventures. For example some of these include gaining more access to cable lines by a joint venture with US West, and merging with AOL. They are also using a tactic called co-development as properties are knitted together by sister

Aol/Time Warner Merger Essay

646 words - 3 pages In an era of big mergers and large corporate conglomerations, the Time-Warner/AOL merger came as no big surprise. However, it did manage to become a center of controversy as eyebrows were raised among competitors and the FCC, who thought that combining the nations largest internet providers and one of the nations largest cable networks, may violate antitrust laws. What made this issue unique, was the effect of globalized antitrust regulation

Time Warner And Aol Merger / Culture Clash, Human Resource, Mergers Bricks And Clicks

1455 words - 6 pages Q B1.1: Are major problems likely when combining different cultures in this combination of "bricks and clicks"?The merger of American Online (AOL) and Time Warner has launched a new trend of emerging organizations: the combining of traditional, established companies with Internet powerhouses.There are several different thoughts regarding this issue in merging companies with different cultures. Some specialists in the industry argue that most of

Aol Time Warner Essay

1592 words - 6 pages AOL Time Warner On January 10, 2000, one of the largest, most powerful mergers was announced to the world. Media giant Time Warner will join forces with the Internet superstar, America on Line. The $183 billion dollar deal is the biggest in history. In the recent past, there has been a wave of merger-mania, both in the United States and in Europe. The merger of the Millennium is between America on Line and Time Warner. The AOL Time