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

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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. at a Glance 1). Second, Time Warner is one of biggest media programs in the world. Their headquarters are in New York where they currently have seventy thousand employees.
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Gerald Levin, presently the chief executive of Time Warner, is very optimistic about the changes of his company. Also Ted Turner, the vice chairman of Time Warner, stated that he is positively certain that the merger between Time Warner and AOL will be a success. Time Warner, having a revenue of $26.8 billion dollars in 1998 and a net income of $168 billion dollars in 1998, states that they are financially doing fine (AOL Time Warner Inc. at a Glance 1). Some of the networks Time Warner owns on television are: HBO, CNN, and TNT. Also, Time Warner owns a ...

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