Topic > Aol Vs Time Warner Merger Essay - 2391

There were some important reasons for it to fail. First, both companies had never worked together, so he accepted problems where both companies didn't care whether the business could work or not. Second, both companies had different financing methods, with AOL preferring to primarily use the inventory option while Time Warner relied on the division's performance. Both reasons are based on the lack of communication between the two companies who did not communicate enough. Third, AOL works like a big family, but Time Warner is a "feudal corporation." Ultimately, AOL was trying to change the world while Time Warner was trying to defend the business world. This shows that the vision of both companies is completely different, which made their acquisition fall through. Table 2b: AOL and Time Warner Different Environment and Strategy Sources: AOL - Time Warner Merger and Its FailureThis table shows the different environment and strategy of AOL and TimeWarner. AOL can provide an Internet platform while Time Warner is the major cable provider supporting broadband support. Chart 2c: AOL and Time Warner Development Industry Analysis Sources: AOL – Time Warner's Merger and its Failure These two charts show the development times of AQL and Time Warner, in this table it shows us that the development times of both companies were extremely different. AOL is early in development but Time Warner is near the end of development. Chart 2d: Net profit of AOL and Time Warner before and after the merger e