Time Warner Merger Case Study
Research paper on - The biggest merger till date. American Online merging with Time Warner for around 186.2 billion dollars.
This merger is the biggest in terms of the total announced value. It took place on 1st October 2000.
The paper deals with various questions about the merger and its failure.
The declared merger was technically an acquisition which failed due to the lack of synergy which is the base for an efficient operation and success of the newly formed company. The merger became the most discussed merger and the most accurate option for case study due to it being the biggest merger (till now in terms of valuation) and its failure.
After 9 years of operation as merged companies, AOL and Time Warner separated. The option of spin-off
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4.1. “Cultural Dimensional Analysis of AOL-Time Warner Merger” by Dr. Sarbapriya Ray of Shyampur Siddheswari Mahavidyalaya, University of Calcutta, India:
(Her work was published in Journal of Applied Library and Information Science with the copyright of World Science Publisher, United States.)
In her views, AOL desired to carry on its growth by acquisition strategy in for rationalizing its high market capitalization. Time Warner was panic-stricken that its outdated network of traditional media outlets looked for a major chunk. Time Warner believed that in order to achieve competitive advantage, it required an instant insertion into the internet.
Dr. Sarbapriya has mainly concentrated on the cultural difference of both the companies.
She says that though both the companies had same aspiration but the organizational culture of both the companies was very different which played a very big role in its
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