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Mergers come and go, usually helping the economy grow or helping companies grow to a bigger and better corporation.

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Introduction

Mergers come and go, usually helping the economy grow or helping companies grow to a bigger and better corporation. A merger is defined as a union between two or more commercial interests or corporations. Mergers have many positive effects on the economy, yet sometimes they could have some nasty negative effects that affect consumers. Usually two companies will come together and combine both their resources and staff and create one huge company. One of the biggest corporate mergers of history that we will explain is the America Online (AOL) and Time Warner Merger. By providing you the reasons that the merger started, the advantages and disadvantages, and some background information on both groups I hope to give you a better understanding of why merger's occur and what will us the consumer look forward to. First, America Online is one of the biggest Internet programs in the world. It gives its twenty million customer's ways to communicate to other people, and consumers the World Wide Web. It provides such programs as AOL, AOL instant messenger, CompuServe, and ICQ. Steve Case is currently the chairman of the company, and is very enthusiastic about the merger. America Online also currently employs twelve thousand one hundred workers. Having a revenue of $4.8 billion in the fiscal 1999 year, it has said that 1999 was a very successful year (AOL Time Warner Inc. ...read more.

Middle

The merger, being announced in January, won't actually merge until late fall of 2000, and it probably will continue through the year 2001 (Megamerger Masters 1). AOL Time Warner Inc. will bring about many combined companies because of the merger. Not only will both companies put together and join their programs, but also they will be bigger and better. AOL Time Warner Inc. is going to house many programs such as: AOL, Time, CNN, CompuServe, Warner Bros., Netscape, Sports Illustrated, People, Home Box Office, ICQ, AOL Instant Messenger, AOL MovieFone, TBS, TNT, Cartoon Network, Digital City, Warner Music Group, Spinner, Winamp, Fortune, AOL.COM, Entertainment Weekly, Looney Tunes, and much more. As you can see that AOL Time Warner Inc. will house more than dozens programs that will become economically efficient and better (America Online and Time Warner will merge...1). Besides the all the companies that are listed below, there are many other advantages for this merger taking place. The advantages of this merger seem bigger than the disadvantages. First of all, the biggest advantage of this merger is better communication for all those who join. The technology will be advanced so much further than many of us ever thought would be possible for one company to manage. With the combination of both the media and Internet we hope by 2001 that many features will be offered to the consumer. ...read more.

Conclusion

AOL, currently being $20.00 a month, might increase their monthly rate because of the new technology. Others feel that it's going to put employer's jobs in jeopardy. Another concern is because if these two companies merge, how long will it be until more companies merge in with them and become one huge company (America Online announce framework...1)? In our own opinion, this new merger which is going to take place soon, seems like a good idea for everyone. Updated technology that will increase economic growth is a great idea for our future. Already the features of AOL and Time Warner have taken place to the first step they have done to make this merger happen. In April, AOL has included a Sports Illustrated Swimsuit edition. This is the first step that the two companies have made to make this merger happen.. We think that the merger didn't take place really fast, and that is good because if they made the merger happen in one day then it might be disastrous. We feel that since they are giving the merger happen in one year that they are taking the time to think about what they are doing, and maybe look at all aspects of the merger. Combination of the media and the Internet may be the best thing that we need, it is something that we never experienced yet, and may be something good for our future. ...read more.

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