Abstract
The purpose of this case study was to examine the impact of acquiring Fox News on Time Warner, Inc. The multi-faceted Time Warner merged with AOL in 2001, created a loss in value to both companies. Time Warner has sought after ways to either increase overall revenue through divesting portions of its corporation or acquire new companies to bolster earnings. This paper explores the impact created by the acquisition of Fox News by Time Warner to its news network line-up. The impact of complementaries, creations of anti-trusts, and the actually of a synergy taking place between CNN and Fox News.
Introduction
In January 2000, Time Warner, Inc. (TW) announced its plans to merge with America Online (AOL) and upon completion in 2001, it had become the largest merger in U.S. corporate history. AOL had a pre-merger value of $163 billion and Time Warner had a preannouncement value of $100 billion, in 2001, the value of the combined firm was stated at $165 billion. While many saw an opportunity to create a synergy out of the two media giants, the overall firm saw little success as a combined entity and has since faced several challenges. Michael R. Baye addresses several issues for discussion concerning the merger in his textbook Managerial Economics and Business Strategy, through the usage of hypothetical memos issued within Time Warner. Memo 4 discusses the possible acquisition of Fox News to increase revenues, bolster subscriptions, and expand their international market. The purpose of this paper is to address the specific problems Time Warner faces by acquiring Fox News and to provide strategic moves that best capitalize on Time Warner's current situation.
Methodology
Qualitative and case study research were t...
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...sing revenues to bolster earnings. By focusing on retaining its viewers, building viewer loyalty, and increases advertising revenues, TW would be able to continue to successfully compete against Fox News without the need to acquire the actual network.
References
Baye, Michael R. (2005). Managerial Economics and Business Strategy, Fifth Edition. Boston, MA,: McGraw-Hill.
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Synergy. (2006, December 8). In Wikipedia, The Free Encyclopedia. Retrieved December 12, 2006, from http://en.wikipedia.org/w/index.php?title=Synergy&oldid=93013797
"Sandy Hook Elementary Shooting: What Happened?" CNN. Cable News Network, n.d. Web. 04 Dec. 2013.
In this argument I will be focusing on Fox Car Rental, Inc. as the basis for a systematic analyses of the organization, as I identify the strength, weaknesses, opportunities, and threats to the existence of the organization and its operations. Also, I will be providing three pitfalls to strategic management. In order to facilitate my argument, the use of a strategic matrix analyses will be utilized.
Roth, Zachary. "Latest Videos." Morning Joe Blog. MSNBC, 9 Apr. 2012. Web. 09 Apr. 2012.
ABC News. The. ABC News Network, 20 Aug. 2014. Web. The Web.
Fox News is constantly being bombarded with accusations of media bias, furthermore, a number of different instances of have occurred which question the validity of Fox News (Groeling). These instances occur throughout normal news broadcasts. Some of the more recent, and grossly biased broadcasts, were from the 2008 and 2012 presidential elections. Historically the Fox News Channel is known to lean heavily to the right, or on the republican spectrum. President Barrack Obama’s political party is widely known to the public as being democratic. Statistically, to this day according to studies over 17 million households receive some form of the Fox News Channel (Auletta). The Fox News Channel is published through a number of different channels to its viewers. These channels include: Television, radio, newspaper, internet and more increasingly electro...
Gaughan, P. A., 2002. Mergers, Acquisitions, and Corporate restructuring. 3rd ed.New York: John Wiley & Sons, Inc.
The following information is pertinent to the vitality and success of the FOX 24 cable-programming national network. It is necessary to discuss the importance of the ratings and shares system to enable FOX to increase viewership in the local TV market of 247,780 (.235% of US). This market is highly competitive among the affiliates of the other major networks: ABC, CBS and NBC.
A good part of Outfoxed focuses on the company's blurring of news and commentary, how anchormen and reporters are encouraged to repeatedly use catch-phrases like "some people say..." as a means of editorializing within a supposedly objective news story; how graphics, speculation and false information are repeated over-and-over throughout the broadcast day until it appears to become fact, and in doing so spreads like a virus and copied on other networks. A PIPA/Knowledge Networks Poll points to glaring, fundamental misconceptions about the news perpetuated upon Fox viewers, versus information received from widely respected news-gathering organizations like NPR and PBS. Asked, for instance, "Has the U.S. found links between Iraq & al-Qaeda?" only 16% of PBS and NPR viewers answered "yes," but a frightening 67% of Fox viewers believed there had.
The corporation I chose to discuss is McDonald’s. McDonald’s is a publicly traded corporation that includes the following domestic companies, McDonald’s, Chipotle Mexican Grill, and Boston Market. This paper will discuss the following:
“Timeline: Key Events Leading Up to Sept. 11.” Fox News. N.p., n.d. Web. 22 Jan. 2014. .
"CNN Video on Facebook - CNN.com Video." CNN. Cable News Network, 30 Apr. 2014. Web. 13 May 2014.
The soft factors can make or break a successful change process, since new structures and strategies are difficult to build upon inappropriate cultures and values. These problems often come up in the dissatisfying results of spectacular mega-mergers. The lack of success and synergies in such mergers is often based in a clash of completely different cultures, values, and styles, which make it difficult to establish effective common systems and structuresBased on the case study, extensive research and annual reports of AT&T the writer has mapped AT&T in the different domains. AT&T should strive to attain a perfect circle as close to the centre as possible, which indicates total synergy, order and equilibrium. Where the circle is skewed drastic change is needed as it moves closer to the outer ring of chaos:
BR was sold to Delta Foods in 1996 for US $2 billion. At this time, it was one of the largest fast-food chains in the world generating sales of US $6.8 billion. DF purchase of BR brought in a new cultural paradigm. DF is an individualistic, aggressive growth company with brands they believe are strong enough to support entry into new overseas markets without the need for local partnership. The DF strategy is one of direct acquisition and JV’s were not part of their strong suit. DF strategic implementation is based on hiring local managers directly or transferring seasoned managers from their soft drink and snack food divisions. The DF disdain for JVs is clearly reflected by their participation in only those JVs where local partnering was mandatory (e.g. China) to overcome regulatory barriers to entry. JVs had been the predominant strategy for BR which was unlike the DF outlook. Terralumen’s strategy was misaligned and out of sync with the DF strategy. This was unlike the complementarity that existed with BR’s strategy. This misalignment began to affect the JV relationship that had worked well with BR in the initial years. The failure of Terralumen and DF to recognize this fundamental cultural difference between their operational strategy styles i.e. Individualistic and Collectivism leads to their inability to proactively create steps for better alignment in the early period after acquisition, creating uncertainties and difficulties for both corporations. There is a lack of communication and virtually absence of trust between two new partners. DF appeared to be flexing its muscles in the relationship and using a more masculine approach compared to Terralumen’s more feminine approach. Both the corporations are strategically involved in a complex situation where they appear reluctant to address the issues at stake and move ahead together. The DF strategy of
Mackay, Mairi. "The Greatest Web Pioneer You've Never Heard of - CNN.com." CNN.com International. 03 Mar. 2009. Web. 26 Nov. 2013.
Schwarz, H. (1900) ‘Fox News is the most trusted national news channel. And it’s not that close.’, Washington Post, 9 March. Available at: http://www.washingtonpost.com/blogs/the-fix/wp/2015/03/09/fox-news-is-the-most-trusted-national-news-channel-and-its-not-that-close/ (Accessed: 23 March 2015).