Case Study - AOL/Time Warner :: essays research papers

AOL term WarnerOn December 14, 2000, the Federal con attituder Commission approved the planned merger of AOL and while Warner after twain companies pledged to protect consumer choice both now and in the future. The AOL judgment of conviction Warner merger was approved by the Federal Communications Commission on January 11, 2001, and is the biggest merger in corporate history, then estimated at a perfect market value of $350 one million million million. The merger created a powerhouse of new and tralatitious media. AOL Time Warner has led the union of the media, entertainment, communications and Internet industries. Throughout the old age the face of media and entertainment industries has changed drastically as a result of increase technology. The popularity of newspapers gave way to other rolls of media and entertainment such as magazines, television, cable, music, and most lately the Internet. The Internet boom of the 1990s gave rise to the popularity of America Online AO L and Time Warner proverb themselves at a crossroads where old and new media would become one. The histories of both AOL and Time Warner are extensive and harbor not always been happy. Time Warner itself was created by devil mega-mergers. The first merger was in 1989 between Time Inc., publisher of many magazines such as Time Magazine, and Warner Communications. Both companies have histories stretching as far back as 75 years or so. In 1996, this company merged with Turner Broadcasting, which brought CNN with its founder Ted Turner. These two mergers created a company ready to lead in any form of media. The company launched the HBO television network. Time Warner, headquartered in New York, had $27.3 billion in revenues in 1999 and a market value of $112.6 billion. On the other side of the merger there is new media giant AOL, today the biggest, richest, and most successful internet company in the world. It was founded in 1985 as Quantum Computer serve and by 1994, after changi ng its name, had a million subscribers. In its beforehand(predicate) years, it almost fell because of the problems associated with introducing unlimited access for a fixed periodical fee. As its number of users increased, so did its capacity problems, which made many customers maddened because they could not get a connection. The problem was solved when AOL made a deal with MCI WorldCom, which led merge with its rival CompuServe. In 1998, AOL acquired Netscape for $4 billion in a deal that knocked off its rival Microsoft.