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

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• 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.