Network Effects and Merger Analysis: Instant Messaging and the Aol-time Warner Case
نویسندگان
چکیده
On January 10, 2000, Steve Case, CEO of AOL, and Gerald Levin, CEO of Time Warner, announced the acquisition of Time Warner by AOL. This merger is unique in many respects; it is the largest (to this date) merger ever proposed and consummated, valued at the time at $183 billion; it also was the first merger of “old” and “new” media, and by far the most significant Internet-related merger to date. Each company was a major player in its industry: Time Warner’s cable properties served over 18% of US cable households, while AOL served about 40% of US online households.
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