Subject category:
Strategy and General Management
Published by:
Harvard Business Publishing
Version: 23 June 2005
Length: 31 pages
Data source: Published sources
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https://casecent.re/p/98332
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Abstract
This is a Portuguese version. AOL Time Warner, which has been billed as the 'first fully integrated media and communications company of the Internet Century', raises the fundamental question of how value will be created and captured by the merger of AOL and Time Warner. This case describes just how different AOL was from Time Warner in strategy, culture, and execution, and permits a thorough analysis of how value is proposed to be created through capturing synergies within the new company. The discussion of synergies is divided into three levels: tactical, strategic, and transformational. The key question to address is whether a merger of this sort is the most effective way to create value or whether contracting and other mechanisms is equally good or perhaps superior. A rewritten version of an earlier case.
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Abstract
This is a Portuguese version. AOL Time Warner, which has been billed as the 'first fully integrated media and communications company of the Internet Century', raises the fundamental question of how value will be created and captured by the merger of AOL and Time Warner. This case describes just how different AOL was from Time Warner in strategy, culture, and execution, and permits a thorough analysis of how value is proposed to be created through capturing synergies within the new company. The discussion of synergies is divided into three levels: tactical, strategic, and transformational. The key question to address is whether a merger of this sort is the most effective way to create value or whether contracting and other mechanisms is equally good or perhaps superior. A rewritten version of an earlier case.