Thursday, May 14, 2009

But that was in 2001, when the total value of the two entities was worth $260 billion.

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The next case is that of the second largest merger in the world – the $167.4 billion merger between AOL and Time Warner in 2001, making the combine, the largest media & entertainment conglomerate in the world. But that was in 2001, when the total value of the two entities was worth $260 billion. Today, the Mcap stands at just a repulsive $29.5 billion – an appalling fall of $88.7%! In terms of financials, the new company has recorded $132.6 billion in aggregate ‘net losses’ since the merger happened. Less than a year after the merger, the Internet bubble burst & the two chief architects Gerald Levin (the then CEO, Time Warner) & Steve Case (founder, AOL) conceded that their forecasts had gone way off-mark.


For more articles, Click On IIPM Article.
Source :
IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and
Arindam Chaudhuri (Renowned Management Guru and Economist).

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