In the year 2001, the merger between these two giants was held with the aim “to create the world’s fully integrated media and communication company for the internet century in an all stock combination valued at $350 billion.” This is the largest merger in the history of America (Theierer Adam, January 11, 2010).
The merger was carried so as to create the global media …show more content…
Yes, the merger doomed from the outset, as the shares of both the companies dropped immediately after the announcement due to the unrealistic valuation. Customers were not ready to pay add – on subscription fee. Both the companies failed to implement their strategy and were not able to encourage the climate within the companies which can lead to the initiation of synergy. Moreover, both the companies failed to understand the trend and manage the change in the organization (Abuiliazeed Ahmed, et al, April 2012).
1. Theierer Adam, January 11, 2010, AOL – Time Warner Merger at 10: Lessons for Today, data retrieved on October 29, 2013 from http://techliberation.com/2010/01/11/aol-time-warner-merger-at-10-lessons-for-today/ 2. Turner James M., May 2002, Mega Merger, Mega Problems: A critique of the European’s community commission on competition’s review of the AOL/ Time Warner Merger, Page no. 136, data retrieved on October 29, 2013 from http://www.auilr.org/pdf/17/17-1-5.pdf 3. Abuiliazeed Ahmed, et al,