• Research Paper on:
    Synergy and the Merger Between AOL and Time Warner

    Number of Pages: 5

     

    Summary of the research paper:

    In five pages this paper evaluates the performance of America Online in an effort to determine whether or not synergy was created by the merger with Time Warner. Five sources are listed in the bibliography.

    Name of Research Paper File: TS14_TEaoltwr.rtf

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    Unformatted Sample Text from the Research Paper:
    be too strong and powerful, able to control many different forms of media. Other saw the merger as an opportunity to create synergy as well as economies of scope and  scale. The two companies operated in different markets but had an interesting interrelations in the way they may be brought together, with synergies realised decreasing operating costs and maximising the  customer base, seen as giving the opportunity to create a higher level of value for the shareholders. The desire to grow, along with the attraction of the potential to realise  this synergy may be seen as the motivation behind this merger. However, in looking at the accounts of the new merged AOL, and considering the performance over the last two  years we can start to look to ee if these synergies have occurred. In looking at this we will be arguing that although there is potential, it does not appear  to be being realised as this time. If we look at the AOL now we can see it now owns CompuServe as well  as many of its former competitors. This is an aggressive strategy aimed to get high market share. America Online is now the largest internet provider in the United States, and  with the merging with Time Warner is also a large multi media entertainment company that is well placed in order to gain many of the benefits of economies of both  scope and scale. The potential for synergy is apparent, however, potential does not indicate automatic realisation. This takes comprehensive integraion and high levels of management skills at differing levels.  Growth for the company at this current time cannot be calculated in a meaningful way due to the merger, however, the sales growth 

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