Aol Merger Essay
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- Category: Other
- Date Submitted: 10/03/2014 12:31 AM
- Pages: 26
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INTRODUCTION
When AOL officially merged with Time Warner in 2001, not only was it the largest deal in merger history at a resounding US$164 billion but it was what some called a marriage made in media heaven. AOL being the masters of the internet universe at the time were supposed to bring the so called ‘old media’ being newspapers, magazines and television of which represented Time Warner’s core business, into the internet age. The deal as some analyst prophesized would bring untold synergies and benefits to media consumers everywhere as old media married new media. Unfortunately as with all marriages this was not the case, this assignment will not only give a background of the two companies before the merger but will delve through the reasons behind the merger, the detail of the type of merger they had, the financing they used, the results of the merger and finally a conclusion on why what was touted as the greatest merger of the 21st century failed so spectacularly.
The layout of the assignment will be an overview of the parties involved, the type of merger and the funding used. Progressing onto the history of the parties involved the principal activities of the parties involved and the financial performance of the parties involved. Finally there will be an examination of the reasons for the merger, the results of the merger and finally a conclusion to close the whole assignment.
PARTIES INVOLVED
The parties involved in the merger were AOL (America online) and Time Warner Inc.
* TIME WARNER
Time Warner Inc. is known as a global leader in media and entertainment with businesses in television networks, filmed entertainment and publishing, they are responsible for such household media brands as; Time magazine, HBO, Warner Bros studios, Cartoon network studios and CNN just to name but a few. Time Warner uses its industry-leading operating scale and brands to create, package and deliver high-quality content worldwide through multiple distribution outlets....
When AOL officially merged with Time Warner in 2001, not only was it the largest deal in merger history at a resounding US$164 billion but it was what some called a marriage made in media heaven. AOL being the masters of the internet universe at the time were supposed to bring the so called ‘old media’ being newspapers, magazines and television of which represented Time Warner’s core business, into the internet age. The deal as some analyst prophesized would bring untold synergies and benefits to media consumers everywhere as old media married new media. Unfortunately as with all marriages this was not the case, this assignment will not only give a background of the two companies before the merger but will delve through the reasons behind the merger, the detail of the type of merger they had, the financing they used, the results of the merger and finally a conclusion on why what was touted as the greatest merger of the 21st century failed so spectacularly.
The layout of the assignment will be an overview of the parties involved, the type of merger and the funding used. Progressing onto the history of the parties involved the principal activities of the parties involved and the financial performance of the parties involved. Finally there will be an examination of the reasons for the merger, the results of the merger and finally a conclusion to close the whole assignment.
PARTIES INVOLVED
The parties involved in the merger were AOL (America online) and Time Warner Inc.
* TIME WARNER
Time Warner Inc. is known as a global leader in media and entertainment with businesses in television networks, filmed entertainment and publishing, they are responsible for such household media brands as; Time magazine, HBO, Warner Bros studios, Cartoon network studios and CNN just to name but a few. Time Warner uses its industry-leading operating scale and brands to create, package and deliver high-quality content worldwide through multiple distribution outlets....