Aol-Time Warner mergers.

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Aol-Time Warner mergers

The Aol-Time Warner merger created the worlds largest media company from the first significant merger of an Internet company with a traditional firm.  Aol shareholders were given 55% of the new company to Time Warner’s 45%, giving them the effective control of the new company.

The potential advantages perceived for this merger in 2001 for Time Warner were that they would be able to invest in new online efforts, such as news (CNN), film (Warner Bros) and magazines (Time, people).  For Aol, Time Warner will provide them with more content for its service provider.  It will end Aols bandwidth problem.  The company had struggled to find ways to speed up its dial-up Internet service for America’s households.  It will now be able to provide a quicker, broadband Internet service carried on Time warners Roadrunner cable modem service.

Aol will give Time Warner an established Internet platform for its content, in return Time Warner will grant Aol high-speed cable access to households.  The company will be able to provide integrated media services, so the customers can get films, music, magazines and the internet all through their digital TVs.  Potentially, we may see new media products coming from this merger such as films online.  There may be an online cinema where we can watch films or even music videos.  These could be pay per view products.  We may also be able to read magazines and books online or even listen to them over the phone.

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     Recently, AOL has launched an interactive TV service on Sky Digital.  Customers can access this through their sky remote and get instant messaging, email, headline news, sport and the weather via AOL on Sky Active.

One of Warners Hollywood High Concept films was Harry Potter.  With the launch of the film came many elements of synergy.  Merchandise was released along with toys, and the computer game.  Ofcourse the books were the first items to be launched.  The films alliance with Aol has assisted its success.  This is because of the promotion for the film. They used their ...

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