Aol Time Warner On Essay

1562 words - 6 pages

AOL Time Warner OnJanuary 10, 2000, one of the largest, most powerful mergers was announced to the world. Media giant Time Warner will join forces with the Internet superstar,America on Line. The $183 billion dollar deal is the biggest in history. In the recent past, there has been a wave of merger-mania, both in the United States and in Europe. The merger of the Millennium is between America on Line and TimeWarner. The AOL Time Warner deal represents the joining of the Old Media with the New Media. Not only is it a marriage of different approaches, the two CEO's are very diverse individuals. The two companies are quite different, in nearly every aspect. Some of the divisions of Time Warner have been around since the1920's, while the youngster, AOL is a mere fifteen years old. The quick paced, new up starting Internet companies never thought in a million years they would ever need the old stand-by media organizations. "The Internet will revolutionize everything", that is what their beliefs were. They were fearless and believed themselves to be invincible, but things have changed. TheInternet has put the world only a mouse click away and it has changed the world.The fact of the matter is the world of the Internet is extremely competitive and in order to survive, you must invest huge sums into your marketing campaign, in some cases up to seventy percent of a budget. The one thing that you can always could on in this word is change, and there are going to be some major changes in the realm of the high tech companies. The 'techies' are going to have to realize their need for and have to learn how to form lasting relationships with the 'old stand bys' in order to keep up with today's world. Time Warner is, for the most part, a stable reliable organization. Time Warner's holdings include many magazines, Time, Sports Illustrated, Money and Fortune just to name a few. TimeWarner also possesses Warner Brothers Studio, Warner Music (which recently acquired EMI Music), Turner Classic Movies and an array of television stations.A partial list of the broadcast networks includes CNN, TNT and HBO. Time Warner is also the second largest cable television provider in the country. They have also recently invested huge sums of money into their cable system to prepare it for Roadrunner technologies. Roadrunner is an alternative to a standard Internet service provider account (ISP). Roadrunner allows a user to send and receive as much information as they desire and unprecedented speeds. Time Warner has played around with their own Internet company, Pathfinder, with little success. The world of the Internet is so cutting edge that unless a company pays very close attention to it, chances for success are very low. This fact brings the importance of a joining with an organization such as AOL into the light for TimeWarner. America on Line realizes the value of a company as established as TimeWarner. AOL is a New School organization. Steve Case and Bob Pittman also had the...

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