was there any synergy and follow up implementation to the AOL - TIME WARNER MERGER?

was there any synergy and follow up implementation to the AOL - TIME WARNER MERGER?

Expert Solution

In the context of mergers and acquisitions (M&A), Synergy means the combined value and performance of two companies will be greater than the sum of the separate individual parts. Here in case of AOL and TIME WARNER, The latter, via AOL, thought it would now have a footprint of tens of millions of new subscribers. On the other hand, AOL thought it would benefit from access to Time Warner’s cable network as well as to the content, adding its layer of so-called ‘user friendly’ interfaces on top of the pipes. Basically the idea was to combine Internet technology with entertainment content, sell it online and create a blockbuster new industry for the 21st century. But to their surprise, the synergy and cooperation failed miserably because-

1) The jefes who run the big operating units preferred the safety and comfort of a large corporation to the risk of running one's own business. And that created powerful fiefdoms where divisions didn't cooperate with each other resulting in failure of synegy.

1) Lack of Mutual respect

2) They lost the sight of what customers really wanted.

3) Time Warner turned out to be the worst kind of conglomerate.

jeff jeffy answered 5 months ago

Why does AT&T wish to acquire Time Warner? What is the benefit to the merger? Who...

Why does AT&T wish to acquire Time Warner? What is the benefit to the merger? Who loses? The U.S. government doesn’t generally get involved with vertical mergers, why is the government contesting the AT&T/Time-Warner deal, but not (at least yet) the Disney/Fox deal (although the U.K. has expressed concerns)? Do you believe AT&T should be allowed to acquire Time-Warner? If so, should they place any restrictions on the merged firm?

Will you explain the merger between AT&T and Time Warner? Why President Trump and his Department...

Will you explain the merger between AT&T and Time Warner? Why President Trump and his Department of Justice filed a lawsuit against the participants in this merger?

Read these two articles about the AT&T Time Warner merger. What do you see as the...

Read these two articles about the AT&T Time Warner merger. What do you see as the benefits and drawbacks of this merger for both consumers and the firms? Do you think it should be approved? Why or why not? In general, do you think monopolies are good or bad for consumers? Why? The Perils of an AT&T-Time Warner Merger: Last time a communications giant acquired Time Warner, it was an unprecedented disaster. Here's what is likely to go wrong this...

The operating revenues of the three largest business segments for Time Warner, Inc., for a recent...

The operating revenues of the three largest business segments for Time Warner, Inc., for a recent year follow. Each segment includes a number of businesses, examples of which are indicated in parentheses. Time Warner, Inc. Segment Revenues (in millions) Turner (cable networks and digital media) $93,600 Home Box Office (pay television) 95,100 Warner Bros. (films, television, and videos) 81,700 Assume that the variable costs as a percent of sales for each segment are as follows: Turner 23% Home Box Office...

Explain (120–150 words) the time frames for providing additional information or completing a follow-up action (in...

Explain (120–150 words) the time frames for providing additional information or completing a follow-up action (in any field where follow ups need to be done)

(Expected rate of return and current yield) Time Warner has bonds that are selling for $1,184....

(Expected rate of return and current yield) Time Warner has bonds that are selling for $1,184. The coupon interest rate on the bonds is 9.25 percent and they mature in 18 years. What is the yield to maturity on the bonds? What is the current yield? a. The yield to maturity on the bond is _______%. (Round to two decimal places.)

Time Warner could offer the History Channel (H) and Showtime (S) individually or as a bundle...

Time Warner could offer the History Channel (H) and Showtime (S) individually or as a bundle of both. Suppose the reservation prices of customers 1 and 2 (the highest prices they are willing to pay) are presented in the boxes below. The cost to Time Warner is $1 per customer for licensing fees. Preferences Showtime History Chanel Customer 1 9 2 Customer 2 3 8 Should Time Warner bundle or sell separately? Your answer needs to include the non-bundled...

C++ Directions: Follow the insttructions of implementation and then fill in the following code for QueueArray...

C++ Directions: Follow the insttructions of implementation and then fill in the following code for QueueArray class Both given below: 5.1 Implement QueueArray<DataType>::QueueArray(int maxNumber) 5.2 Implement QueueArray<DataType>::QueueArray(const QueueArray& other) 5.3 Implement QueueArray<DataType>::~QueueArray() 5.4 Implement void QueueArray<DataType>::enqueue(const DataType& newDataItem) throw (logic_error) 5.5 Implement DataType QueueArray<DataType>::dequeue() throw (logic_error) 5.6 Implement void void QueueArray<DataType>::clear() throw (logic_error) 5.7 Implement bool QueueArray<DataType>::isEmpty() const 5.8 Implement bool QueueArray<DataType>::isFull() const 5.9 Implement void QueueArray<DataType>::putFront(const DataType& newDataItem) throw (logic_error) 5.10 Implement DataType QueueArray<DataType>::getRear() throw (logic_error) 5.11 Implement int...

Segment Contribution Margin Analysis The operating revenues of the three largest business segments for Time Warner,...

Segment Contribution Margin Analysis The operating revenues of the three largest business segments for Time Warner, Inc., for a recent year follow. Each segment includes a number of businesses, examples of which are indicated in parentheses. Time Warner, Inc. Segment Revenues (in millions) Turner (cable networks and digital media) $81,700 Home Box Office (pay television) 22,600 Warner Bros. (films, television, and videos) 53,900 Assume that the variable costs as a percent of sales for each segment are as follows: Turner...

Time Warner Cable Memo #1 We recently added the EPIX Movie Channels as part of a...

Time Warner Cable Memo #1 We recently added the EPIX Movie Channels as part of a new tier programming for our digital video subscribers. The EPIX channels are sold as an add-on package for $9.75 per month, but we would like to potentially increase our revenue from our subscriber base. Currently we have about 15,059 subscribers, generating monthly revenue of $146,823 Some have suggested we should cut price, as customers tend to be fairly price sensitive for add-on packages. However,...

Question