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Time Warner Merger Case Study

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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 …show more content…

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 Time Warner was panic-stricken that its outdated network of traditional media outlets looked for a major chunk.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 …show more content…

“AOL Time Warner – Non-Strategy and Cultural Clash” by Juliano Lissoni of Interdisciplinary Center of Planning and Strategic Management Studies – ICPSMS (interdisciplinary centre of planning and strategic management studies) in track ‘management strategies and global competitiveness’ has talked about the AOL and Time Warner merger in detail concentrating upon the culture and strategy of the two companies which led to the failure of the company.
He says, on one hand Time Warner, a worthy company led by a double anxiety feeling caused by the business environment changes and for its CEO’s desire to built one of the biggest media companies around the world, in order to compete against companies like Disney, Sony, Viacom-CBS and Vivendi-universal(this merger failing as

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