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AN INTERNET TRIUMPH

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Now they can touch more people (potentially 50 millions of consumers) ... Cable: HBO, CNN, TNT, Cartoon Network. Magazines: ' Fortune ', ' Time ', ' People ' ... – PowerPoint PPT presentation

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Title: AN INTERNET TRIUMPH


1
AN INTERNET TRIUMPH
  • THE AOL-TIME WARNER MERGER
  • A key moment in the medias history

2
The reasons of this merger
  • Now they can touch more people (potentially 50
    millions of consumers)
  • Very interesting financial operation
  • It means a new deal and an offer of
    revolutionnary services
  • Now television, cinema, writing press and
    Internet are joined

3
THE ACTIVITIES OF AOL
  • ONLINE BRANDS
  • America Online, Compuserve, Netscape,AOL
  • Instant Messenger, AOL MovieFone

4
KEY NUMBERS FOR AOL
  • Turnover 26,84 billions of
    dolllars
  • Net benefit 1,075 billion of
    dollars
  • Number of employees 70000
  • Market capitalization 97 billions of dollars

5
STRATEGY OF AOL
If AOL wants to become a big in the Internet
They must make a merger with Time-Warner
6
TIME-WARNER INC
  • DATE OF BIRTH
  • In 1989, From the merger between Time inc and
    Warner communication
  • DIRECTOR
  • Gérard Levin since 1993

7
THE ACTIVITIES OF TIME-WARNER
  • Cable HBO, CNN, TNT, Cartoon Network
  • Magazines  Fortune ,  Time ,  People ,
  •  Entertainment Weekly 
    and
  •  Sports Illustrated 
  • ENTERTAINMENT BRANDS
  • Warner Bros, Warner Music, the WB network, Looney
    Tunes

8
KEY NUMBERS FOR TIME-WARNER
  • Turnover 4,8 billions
    of dollars
  • Net benefit 760 millions
    of dollars
  • Number of employees 12100
  • Market Capitalization 164 billions of
    dollars
  • Two servers to access to Internet
  • -Compuserve 2,2 millions of consumers
  • -AOL 20 millions of consumers

9
EVOLUTION OF THE SHARE TW BEFORE AND AFTER THE
MERGER
10
STRATEGY FOR TIME-WARNER
  • For the share holders, this merger is interesting
    because it allows TW to get in the Internet race,
    which is a promising market and so very
    interesting for the share holders, who possess
    the new shares AOL-TW.

11
THE DIFFERENT TURNOVERS
12
MANY IMPORTANT DATES
  • Monday, 10 of January, AOL / TIME WARNER , the
    Marriage of the Giants
  • AOL 55 TIME WARNER 45
  • Wednesday, 12 of January, AOL / TW are accused of
    disloyal concurrence.
  • Thursday, 13 of January, the share AOL / TW
    decreases.

13
  • Thursday, 27 of January, merger between AOL / TW
    and the production houses EMI.
  • Sunday, 6 of February, American Online Inc (AOL)
    wants to buy 50 of AOL France.

14
MERGER What kind of merger ?
  • Merger by acquisition AOL takes the power on
    Time-Warner
  • There is an exchange of shares between AOLand
    TimeWarner with an increment value which are
    offerd by AOL
  • The company Timewarner didappears

15
MERGER AOL / TIMEWARNER
  • REAL VALUE REAL
    VALUE
  • 73
    64

  • bought value109

AOL
TIME WARNER
16
THE POOLING
  • 2 persons at the head of the society
  • Disadvantage during 2years, the share holders
    cant give up the active of the society
  • They cant buy again actions

17
THE PURCHASE OF TIMEWARNER
  • AOL wants to buy TIMEWARNER for 166 billions of
    dollars in shares, whereas the value of
    Timewarner is about 16 billions of dollars

18
  • So we can say that the goodwill is about 150
    billions of dollars
  • What is the gooodwilll ?
  • It is the value that AOL offers to Timewarner in
    addition of the real value for that TW gives up
    his shares

19
GENERAL CONCLUSION
  • Nowadays, the firms of middle size have to merge
    in order to compete all the actors of the market.
  • The merger between AOL/TIMEWARNER is an exemple
    of the future, that is to say that in many years,
    the big groups are going to crush the little
    companies.
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