Comparing The AOL And Time Warner Mergers

Question 1 Several factors have been proposed as providing a rationale for mergers. Among the more prominent ones are (1) tax considerations, (2) diversification, (3)

Company and Situation In December 2009, Comcast announced its intent to acquire a majority stake in the media conglomerate NBC Universal from General Electric (GE). The planned acquisition was subject to scrutiny from activists and government officials; their concerns primarily surrounded the potential effects of the vertical integration that the acquisition could create, as Comcast is also heavily involved in cable television and internet services in many media markets. The deal went through, resulting in Comcast owning 51% of the company until March 2013, when GE divested its stake to give Comcast sole ownership.

Our case study deals with Mass Merger. Since the 90s, together with the globalization of business, Mergers and Acquisitions have developed at an incredible pace. Thus, companies from all over the world can be lead to work together as one single corporation. Moreover, the world has become interdependent not only economically, but also culturally, that is to say one culture may influence another one or different cultures can be mixed. It is then obvious that intercultural issues have to be solved.

Most of the concerns regarding the proposed merger are regarding how large the combined company would be and its overwhelming market share. Comcast, was already the No. 1 cable provider in the U.S., this deal would give them 8 million more subscribers and 30 percent of the market. After the merger the combined company would serve over 30 million homes, and that’s after divesting of about 3 million customers. This deal would have created a company with the most broadband and video subscribers in the nation, along with the ownership of significant programming and/or content.

AN example, in 2008, Hewlett Packet purchased Electronic Data Systems to enhance the services aspect of the partnering technology offerings (Yurko, 1996). Marketing networks now give companies much wider customer access including overnight services. One such merger is the Takeda Pharmaceutical Inc. Although distribution chains work great to increase the bottom line, these mergers are not well received by federal agencies like the Federal Trade Commission. The concern being monopolization which is when one company controls too much of a given industry. Another driver of mergers is a desire for a leadership change. Sometimes the owner of the high technology firms simply wants to sale out and has problems finding a successor within to take the helm. Hence, a merger holds an

In a recent article by the Washington Post, Charter has recently acquired the rights to Time Warner Cable (TWC) in a $55 billion dollar deal (Kang). This comes a few weeks after Comcast, a close competitor withdrew it’s own merger deal after a potential. The article states that the merger between Charter and TWC creates a viable competitor to Comcast which currently has 40 percent of all broadband internet subscribers. With the merger the article states that the company New Charter, would have a 35 percent share of the current broadband market, compared to Comcast which would have had more than 50 percent.

The merger between American Airlines and U.S. Airways is one that can be explained using static game theory models. The two players in the game would be American Airlines and U.S. Airways. Each one of the players would have something to gain from the merger, but they would also have something to lose. In this game American Airlines is our first player. American Airlines’ potential payoff is merging with a company that is maximizing profits, but is also lacking in the customer service department. U.S. Airways is player two, and in this game they are merging with a business that is suffering from chapter 11 bankruptcy, but is excelling in customer service.

Sharing information and keeping the lines of communication open with the existing employees and new employees is going to be a vital requirement for this merger. Mergers tend to leave employees anxious which create increased stress and lower productivity rates among employees (Bhaskar, n.d.). An effective communication plan can help mitigate this problem and quickly return the company to full production when the merger has been completed. Starting communication lines early also help reduce the amount of speculation employees have. Even with before a merger deal is completed employees might get a sense of what is going on through a number of different channels. This can lead to

The landscape of television has undergone major shifts over the last five years. In 2013, cable companies like Time Warner and Comcast, pulled over 100 million subscribers (Udland) total subscribers. By 2015, that number dipped below 100 million subscribers decreasing by one percent (Udland). In 2013, streaming services like Netflix, Hulu, and Amazon, totaled over 40 million subscribers (Udland). By 2015, they saw a 30 percent increase in subscribers (Udland). While cable still holds dominance in the market, the latest trends have shown that streaming services will overtake them in the near future. Streaming services’ surge in popularity is a result of having a product that provides a superior alternative to cable that accommodates the customer.

When information is shared between the two companies it makes the whole organization better. Utilizing programs to show how effectively the company is operating can help show areas of concern. These can be accessed and addressed in a timely fashion . Because each side would like for the company to thrive, they work together . During this merger roles of the employees / department should be clearly defined . As with anything the lack if knowledge or understanding is what cause failure. As I have started before knowing when employees are aware of their roles and how to do them effectively thing run much more smoothly and are done to standard. (work by rote) .when the employee fails to understand the organization Does as well . While it s the employees job to stay well informed it is also up to management that these things be made clear. During a merger the by learning different ways of comp,eying task employees learn and management  s able to vine up with new techniques.

One major objective of mergers is to be able to reduce or fully eliminate the weaknesses that may exit in

When companies combine/merge the whole objective is to gain new opportunities, gain market share, grow the business, to become more innovative and to improve product offerings, utilizing/sharing the existing resources and data. From the case

The purposes of this report are to (1) address the problems Sprint and Nextel incurred before the merger, (2) discuss

Paulson E. (2001). “Inside Cisco: The real story of sustained M&A growth”, John Wiley & Sons, Inc.

merge between companies from two different countries. The fact that there has been a very big