Abstract

The case discusses the problems that surfaced after the merger of AOL, one of the world's leading online service providers, with Time Warner, a leading media and communications company. It first examines the rationale for the merger in terms of the synergies expected from the combination of traditional and new media. The case then discusses the various problems faced by AOL Time Warner following the merger such as cultural clashes, financial crisis, and a business downturn. The case also discusses the restructuring initiatives taken by the company to set things right, and examines the future of AOL TW.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Mergers and acquisition
• media companies
• Internet companies.

Keywords

Problems, AOL, online service, Time Warner, media, communications, rationale, merger, synergies, problems, AOL Time Warner, merger, cultural clashes, financial crisis, business downturn, restructuring