The Merger of ---and ---

MERGER OF AOL AND TIME WARNER (Your name (Your school

MERGER OF AOL AND TIME WARNER

Introduction

Merger is a combination or coming together of two companies to make a larger company . It involves stock swap or payment of the cash to the target . Merger can also be referred to as `combination of equals . The stock swap is meant to allow the two companies ' shareholders share the risk or benefits that may accrue due to such event . A merger involves the change of company name and even re-branding . There are different

types of mergers , namely Horizontal merger- where two different companies producing similar products in the same industry Vertical mergers- when two different companies working in the same industry but at different levels in the production of one good combine to form one larger farm concentric or congeneric merger- where the two merging firms are in the same general industry but have no mutual stakeholders relationship like buyer / customer or supplier relationship . For example a merger between a bank and a leasing company and conglomerate merger which occur when two firms operate in different industries (Gancel 2002

Time Warner , a leading media and entertainment company , and AOL , An online company specializing in internet media combined to form a company known as AOL Time Warner . The two companies have agreed to merge in to have a more powerful presence in the market , with AOL maintaining 55 of the shareholding while Time Warner taking 45 (Camerer , 2003 . According to Jim Leddbetter...