Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On Jan 10 th 2000, AOL announced to acquire Time Warner for $182 billion. When the deal was announced, the combined company is worth $350

On Jan 10 th 2000, AOL announced to acquire Time Warner for $182 billion. When the deal was announced, the combined company is worth $350 billion. Now split again, AOL is worth $3 billion while Time Warner is worth about $140 billion 15 years later. Please explain why mega merger often ended up in financial disaster. Why is the promised synergies never realized?

Step by Step Solution

3.51 Rating (158 Votes )

There are 3 Steps involved in it

Step: 1

A merger is considered to be failure when it cannot produce the required results which is the increa... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Mergers Acquisition And Other Restructuring Activities

Authors: Donald M. Depamphilis

6th Edition

123854857, 978-0123854858

More Books

Students also viewed these Finance questions

Question

Explain the regulation of the secretions of the small intestine.

Answered: 1 week ago