AOL_TimeWarner_Case_Study

AOL TimeWarner Case Study Problem Statement: As times change and large conglomerate corporations do not appear to have the same success as they once did, should AOL and Time Warner continue to focus on a complete merger or could another deal that wouldn’t be so volatile be reached. SWOT analysis Strengths: o AOL is the leader and largest digital content provider. o Time-Warner has the largest network of analog content distribution. Magazines subscribers, TV stations, record labels, music distributions, book publishers etc. o Collectively both organizations would own distribution channels in every possible medium, from the Internet to magazine publications. o The conglomerate will have the most quality content to distribute to the largest audience o Total projected revenues will be measured in hundred of billions of dollars o In house content distribution will allow the conglomerate to save big dollars Weaknesses: o The Time-Warner company stands to loose its identity with this merger. AOL will be the official trading symbol o If the deal goes sour both companies will loose large amounts of money. AOL is poised to pay a 71% premium on all Time-Warner stocks, also both firms are highly invested in each other already. o The public doesn’t know how to perceive this deal. Nothing like this has been done before this will be a ground breaking aol, content, time-warner, distribution, merger, digital, world, provider, media, large, time, market, largest, contracts, channels, own, make, even, distribute, conglomerate, , public, money, internet, house, help, firms, firm, cost, both, aol’s, allow, purchase, one, o the, network