Scribd Logo
Upload

Welcome to Scribd!

  • 257 views

    AOL and Time Warner A Classic Failure

    Uploaded by

    Betaa Taabe
    A classic example of failure was the unsuccessful combination of AOL Time Warner. In order to resolve the litigation claims that resulted from the merger, Time Warner paid shareholders over $3 billion for misleading them about the value of the deal. Share holders suffered even more, as stock prices plummeted from the time the merger was first announced.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd

    AOL and Time Warner A Classic Failure

    Uploaded by

    Betaa Taabe
    257 views2 pages
    A classic example of failure was the unsuccessful combination of AOL Time Warner. In order to resolve the litigation claims that resulted from the merger, Time Warner paid shareholders over $3 billion for misleading them about the value of the deal. Share holders suffered even more, as stock prices plummeted from the time the merger was first announced.

    Original Title

    AOL and Time Warner a Classic Failure

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    A classic example of failure was the unsuccessful combination of AOL Time Warner. In order to resolve the litigation claims that resulted from the merger, Time Warner paid shareholders over $3 billion for misleading them about the value of the deal. Share holders suffered even more, as stock prices plummeted from the time the merger was first announced.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    257 views2 pages

    AOL and Time Warner A Classic Failure

    Uploaded by

    Betaa Taabe
    A classic example of failure was the unsuccessful combination of AOL Time Warner. In order to resolve the litigation claims that resulted from the merger, Time Warner paid shareholders over $3 billion for misleading them about the value of the deal. Share holders suffered even more, as stock prices plummeted from the time the merger was first announced.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    You are on page 1of 2

    AOL-Time Warner: A Classic Failure

    A classic example of failure was the unsuccessful combination of AOL Time Warner. In order to resolve the litigation claims that resulted from the merger, Time Warner paid shareholders over $3 billion for misleading them about the value of the deal. Share holders suffered even more, as stock prices plummeted from the time the merger was first announced. A major part of the failure of this merger was the fact that developing a learning culture was never considered, and no strategic vision was created for the newly merged organizations. For example Time Warner Cables high speed Internet services, Road Runner, as part of its profitable cable operations was never integrated with AOL as Case explained in his 2005 article in the Washington Post (6/ 11/05: B01). The first AOL Time Warner Annual Report (2000) claimed that it was fostering a nimble, entrepreneurial culture that recognizes that it can only succeed if everyone supports the new organization based on a shared set of values and common goals. Unfortunately, the team-work necessary to integrate the two companies never happened, because there was no shared strategic vision of what the merger should be, and where it would be going.

    Merger Failure and the Need for a Culture of Learning


    According to some estimates, 85% of merger failures are related to the mismanagement of cultural issues. Awareness of cultural differences is then seen as an issue of primary concern when organizations merge. According to Miller (2000:8): Once you develop an understanding of the current culture, and have compared that with the goals of the merged organization, it is time to think through what it will take to implement that strategy. This process requires consideration of a number of factors, including organizational structure, operating and decision-making apparatus, reward systems, and people related issues. From a systemic perspective, organizational culture is intended to create shared identity, shared purpose, and shared vision among organizational members so that they can together function with optimum flexibility and creativity in the realization of organizational goals and objectives. In our view, merger success can be greatly enhanced when organizational culture is based on learning. When this happens, continuous interaction with internal and external environmental changes can effectively and efficiently take place. Internal conflicts can be better managed, and necessary adaptations to changing environments can be made.

    You might also like