Stretegic Management- Merges, Acquisitions and Alliances

Shareholder’s Report – Time Warner Na-amah Rahming

Time Warner Inc. is one of the leading global media and entertaining conglomerate. The business focuses on a number of areas such as, television network, filmed entertainment, cable systems, magazine publishing and internet service. Some of its popular subsidiary companies are Turner Broadcasting System, New Line Cinema, Kids WB, Warner Bros and many more. In early 2001, AOL, an American Internet services and media company, acquired Time Warner for $164 billion and the name was changed to AOL Time Warner. AOL’s shareholders owned 55% of the newly combined company while Time Warner’s shareholders owned 45%. In 2002, shortly after the megamerger, AOL Time Warner reported the largest net loss ever reported by a company of $99 billion. There was a burst in the dot-com bubble causing the company’s AOL division to drastically reduce in value. As a result, the company had a $99 billion goodwill write-off of AOL. In 2003, the company dropped AOL from its name.

Current Strategies:

1. To grow the company through strategic mergers/acquisitions

2. Increase DVD sales by releasing more movies annually and ensuring that new releases available for DVD sales are in the Blockbuster stores or in the mail on the day of the new release.

3. Globalization-take its leading media brands across the world.

Recommended Future Strategies for Time Warner According to Time Warner’s financial statements posted on moneycentral.msn.com, Time Warner has been able to somewhat rebound from its financial losses. From 2003 to 2009, with the exception of 2008, Time Warner has been able to operate at a net income rather than a net loss. Compared to its close competitors like Disney, Viacom and New Corporation, Time Warner is the second largest media company next to Disney. Some of the recommended strategies for Time Warner are:

1. Increase options for subscribers to be able to watch their favorite television show or movie on...