QUESTION THREE

The AOL and Time Warner merger was initially anticipated to create exciting synergies and results. The deal between the communications and media giants was signed in 2000 for a massive $350 billion, but just two years later the merged company was reporting a $99 billion loss. The integration of two very different company philosophies. AOL was viewed as more aggressive by Time Warner, a more staid and traditionally corporate culture. The two companies came to resent each other and valuable synergies were never realized. Their woes were exacerbated by the dotcom bubble and economic recession, leading to a dissolution of the merger in 2009. As an expert in Multinational finance management,

answer the tackle the following questions

1. What was the main problem with this merger? (2 Marks)
2. Provide 2 alternative and possible consequences to solve the problems in this merger (2 Marks)
3. Provide 3 recommendations to ensure a sustainable and successful merger? (2 Marks)