AOL and Times Warner: A case of Failed Joint Venture
Name
Institution
XXX and XXXXX XXXXXX: A XXXX XX XXXXXX XXXXX XXXXXXX
XXXXXX in companies XXXXXXXX XXXXXXXXXX XXXXXXXXX XX consider looking XXX strategic partnerships XXXX XXXXX XXXXXXXXX in XXXXXXX XX more growth. Strategic XXXXXXXXXXXX refer to XXXXXX agreements that are established XX companies XX XXXX pursue XXXXXXX XXXXXXXXXX and XXXXX. XXXXX XXXXXXX is an XXXXXXX XX XXXXXXXXX alliance XXXXXXX parent XXXXXXXXX say X and X XXXXXXXXXXX in developing a XXXXX XXXXXXX C. However XXX success of a XXXXX XXXXXXX is XXXXXXXXXX XX a XXXXXX of factors that should XXXXXXXXXXXXX be XXXXXXXXX. XXXXXXX XX plan XXXXXXXXXXXXX before embarking on joint XXXXXXX XXX XXXX some of notable XXXXXXXXXX companies XXXXXX huge losses when XXX XXXXXXX XXXXX. Such failure can XXXXXX XX XXX economic stability XX a XXXXXXXXXXX or worse XXX lead XX its XXXXXXXXXXX as seen in XXX XXXXX venture between AOL and Time XXXXXX.
XXX XXXXX XXXXXXX XXXXXXX XXX famous media XXXXXX AOL and XXXX XXXXXX is considered XX one of the XXXXX XXXXXXX in XXXXXXX XX strategic partnerships. XXX XXX XXXXXXXXX entered a XXXXXX XX a time XXXX XXX was a success story XXXX XXXXXXXXX future in XXX XXXXXX presence which XXX a XXX concept. XXXXXXXXX, AOL would benefit from XXX XXXXXXXX XXXX XXXXXXX XXXXX XXXXXXX XXX content XX the later XXXXX enjoy the online presence XX AOL forming the then “XXXXXX XXXX”, (Kumar, XXXX) .XXXXXXX, months after XXX deal XXX closed, there came the economic XXXXXX. The XXX XXXXXXXX XXXXXXXX a loss XX nearly $99 Billion in 2002 as its XXXXXX XXXXXXXX by $ XXX XXXXXXX.
XXX XXXXX implication of XXXX XXXXXX can be XXXXXXXXX XX XXXXXXXXXXXXX XXXXXX XXXXXXXXX XXXXXXX, (2016),XXX- Time Warner XXXXXXX in forming the merger, it XXXXX XX compete with XXXX cooperation’s that were XXXXXXX performing well in XXX XXXX XXXXXXXX XXXXX 1920s. XXXXXX the merger, the existing News XXXXXXXXXXXX XXXX systematically engrossed in XXXXXXXXXXXX a Geographic XXXXXXXX XXXXX base XX engaging in direct foreign XXXXXXXXXXX, XXXXXXX or XXXXXXXXX partnerships as XXXX as acquisitions. Therefore XXX entry into USA XXXX XXX broadcasting film XXXX XXX basic XXXX in Australia XXXXXXXXX it XX a media corporation XXXX an exemplary global XXXXXX XXXXXXXX. It is XXXXXXX this XXXXXXXX to agglomerate XXX XXXXXXXXXXXXXX XXXXXXXXX XXXXXX and at the same time seek competitive XXXXXXXXX in XXXXXXXX XXXXXXXX a XXXXXXXX markets XXXXXXX XXXXXXX XXXXXXXXXXX XXXX XXXXXXXXXXX its XXXXXXX. XXX company XXXXX have performed better XXX it marketed its products XX XXX XXXXXXXXXXXXX XXXXX in XXXX is XXXXXXXXX referred to XX XXXXXX capitalism.
XXX Tale of AOL- XXXX XXXXXX XXXXXXX XXX XXXXX’s XXXXXXX cautionary tale to date. By XXXX, it share price XXX a quarter of what it XXX XXX XXXXX before XXXX XXX XXXXXX was announced. It also posted the XXXXX’s XXXXXXX XXX loss in the corporate world history XX – $US98.7 billion in 2002, (XXXXX, 2019).Yet this was a XXXXXX that XXXXXX XXXXXXXXXX XXX XXXXXXXX not only by the XXXXXXXXX merger themselves XXX also XXX XXXXXXXXXXX to XX a XXXXX XX reckon XXXX.
XXX XXXXXXX consensus XXXXXXXXX in XXX XXXXXXX of XXX- Time XXXXXX XX XXXXX XXXX XXX XXXXXX XX XXXXXXXXXXX XXXXXXX XX well XX XXXXXXXX XXXXXXXXX in both traditional and online media. These discoveries XXXXXX XXX XXXXXXXXXXX that XXXX it XXXXX to media XXXXXXX is barely king. What is XXX XX the XXXXXXXXX XX the XXXXXXX XXXXXXX XXX forms of XXXXXXXX XX consumers XXXXXXX the Networked XXXX, (Healy, XXXX).The merger XXXX brings up the problem of XXXXXXXX XXXXXXXXXXX and conglomeration strategies XXXXX XXXXXXXXX to media experts are XXX XXXX XXXXXX XXXX can portent merger XXXXXXX.
Vertical XXXXXXXXXXX XXXXXX XX a XXXXXXXXX XXXXX one XXXXXXX of the XXXXXX XXXXX to XXXXX- subside XXXX the XXXXX. XXX XXXXXXX it was notable in XXXX XXXX aside XXXX a whooping $5 Billion the merger invested in advertising, the XXXXXXXXX XXX separate XXXXXX XX $468 XXXXXXX spent on XXXXXXXXXXX XXXXXX individual platforms, (Bahari,XXXX). XX XX XXXX XX the concept XX intra corporate XXXXXXXXXXX and cross XXXXXXXXX XX heralded XX XXXX XXXXXXXX XX one of XXX benefits of XXXXXXXXXXXXXX, it may also XXXXXX an XXXXXXXX of XXXXXXXXXXX XXXXXX for placement in terms XX XXXXXXXXX revenues and XXXXXXXXXXXXX.
Another issue XXXX emerges from XXXX a XXXXXX XXXXXXXX XXXX diagonal XXXXXXXXXXX XXXXX entails the incompatibility factors that XXX arise XXXX the different XXXXXXXX XX the two organizations, XXXXXXXXXX in the XXXXXXXXX of the XXXXXXXXX. There are assertions XXXX the XXX of Time XXXXXX Ted Turner XXXX in XXX previous XXXXXX with a Turner XXXXXXXXXXXXX company, XXX XX the XXXXXXX XXXXXXXXXXX of XXX XXXXXX XXXXXXX XXX goals of XXX XXXXXXXX from XXXXXXXXX XXXXXXXXXXXX, (XXXXX, XXXX). In as much XX the benefits XXX XXXXXXXXXXXXXX XXXXX be derived XXXX XXX XXXXXX XXXX of the companies, it XX XXXXX noting XXXX the XXXXX XXXXXXXX and licensing XXXXXXXXXXXX, XXX enterprise model XXXXX achieve the benefits of cross XXXX form synergies.
Using XXX concept of XXXXXXXXX XXXXXXXXX, a XXXXXXXXXX whereby XXX initial XXXXX that makes an organization XXXXXXXXXX, erodes XXX XXXXXXXXXXXX replaced XX some XXXX XX competitive XXXXXXXXX. AOL banked XXX hope on the XXXXXXXXX XX a XXXXXX broadband that XX the time only 3%XX XXX country had. XXXX means that it had XXXXX XXX business upon XXXXXXX XXXXXXXXXXXXX XXXXX XXX not a XXXXX corporate XXXX. XXXXX impeded XXXXXXXX of XXX XXXXXX XXXX XXX onset, (Bahari, 2017). XXXXXXXXX, the XXXXXX XXX bound to fail due to cultural XXXXXXXXXXX XX XXX XXXXXX companies. XXX was an XXXXXXXXXX XXXXXXXX XXXXX XXXX XXXXXX XXX a conservative XXXXXXX. X merger XXX XXXX suffice XX XXXXX are XXXXXXXXXXXXX in XXXXX XX XXXXXXXXXXX, XXXXXXX offering and culture between the partnering companies. This XXXXXXX compatibility which XXXXXXX success of a XXXXXX.
XX analyzing complex XXXXXXXX XXXXXXX, it is apparent that XXXX XX the success factors in formation XX a XXXXXXXXXX XXXXXX XXXXXXX; XXXXXXXXXX XXXXX XX XXX ability XX a corporation XX adopt XX the XXXXXXX in XXX business environment; An XXXX XXXXXX XXXXX is XXXXXXX for XXX XXXXXXXXX XXX maintenance XX the organization by XXXXXXXX steady flow XX information XX enhance XXXXXXXX to XXXX place ; XXXXXXXX are also a XXXXXXX component of a merger since XXXX exist inside a merging organization. XXXX therefore XXXXXXX in XXX form XX the XXXXXXXXXX departments in a merging organization.
It XX inherent that the XXX XXXXXXXXXXXXX, XXX XXX XXXX XXXXXX, should have XXXXXXXX XXXXXXXXXX XX ensure XXXX XXXX had XXXXXXX cultures before XXXXXXXX in XXXXXXXXXXX. XXX XXXXXXXXX XXXXXX ensure XXXX XXXX XXXXX XXXXXXXXXX on the potential XXXXXXXXX XXXXXXX, XXXXXXXX XXXXXX XXX XXXXX XX the resultant merger. XX is important XXXX XXXXXXXXXXXX reveal similar behaviors XX form a XXXXXX. Before XXXXXXXXX on the XXXXXX, XXXXXXXXX should XXXXXXX XXXXXXXXX XXXXXXX due diligence to uncover XXXXXXXX XXXXXXXXX and test XXXXXXXXX, the structuring scope and the exclusivity XX the provisions as XXXXXXX XX the other XXXXX.
Partnering companies should XXXX XXXX XXXXXXXXXXX XX XXXXXXX collaboration XXX XXXXXXX. These XXXX include XXX need to crystallize in the deal XXX paying XXXXX XXXXXXX XXXXX in order to meet their XXXXXXXXXX XXXXXXXX. XXXX should XXXXXXX guiding principles in XXX XXXXXXXXX phase to determine the XXXXXXXXXXXX and XXXXXXXXXX of XXX XXXXXX organizations in terms of XXXX they should XXXXXX XXXX XXX XXXXXX.
References
XXXXXX, M. (2017). XXX XXXX XX culture in XXXXXXX & XXXXXXXXXXXX: An investigation from a XXXXXXXXXXXX XXXXXXXXXXX (XXXXXX's XXXXXX, Høgskolen i Oslo og Akershus. XXXXXXXXX for XXXXXXXXXXXXXXXX).
XXXXX, P. X. (XXXX). XXXXXXXXXXX XX X&X accounting XXXX XXX’s XXXXXXXXXXX of XXXX XXXXXX. XXXXXXXXXX XXX XXXXXXXX Research, 46(5), XXX-XXX.
XXXXX, B. X. (XXXX). American Online: XXXX XXXXXX XXXXXX and Other Restructuring. XX XXXXXX XXXXXXXX in XXX World’s XXXXXXX Mergers and Acquisitions (pp. 31-43). XXXXXXXX, Cham.