The Story Behind Time Warner...

The media that I previously picked as my favorite is the internet. Since the internet can be pretty broad I narrowed it down to AOL instant messenger since I am frequently on that part of the internet. AOL instant messenger is a part of the Time Warner internet department. As we read in Chapter 2 of the Hanson text, America Online (AOL) merged with Time Warner in 2000. Many were concerned about the market power that this merger could bring to the table but the U.S. Federal Trade Commission approved the merger. The merger made Time Warner the largest media company in the United States. In 2003, the corporation changed its name from AOL Time Warner back to Time Warner. This merger with Time Warner doesn’t specifically influence me in that I usually ignore any of the pop up ads that come up on the computer. Even when I am searching on the internet I tend to ignore any of the pop up ads or the ads that are running along the top or sides of the page. The merger with Time Warner could be influential in that Time Warner would then be able to have its ads pop up on any of the America Online web pages.

This idea is an example of synergy. The text defines synergy as the combined strength of two items is greater than the sum of their individual strengths. In the media business, synergy means that a combined company can offer more value, cost savings, or strength than the two companies would separately. Time Warner definitely fits this definition in that their merger with AOL allowed them to become the largest media company. The combined efforts of both of these companies have offered more power for this company as a whole.