We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

The Time-Warner merger - Essay Example

Free
The estimated values of Warner stock were indeed correct. The merger was announced in early 1989 (March) and the profits of 1988 were used as the basis to determine the free cash flows and EBIT, therefore the slightly higher amounts that have been assumed are quite reasonable and jsutified. Moreover, four different discount levels have been considered, which would provide a good indication of the level of fluctuations that could be expected through the daily changes in stock prices due to the vagaries of the market and hence represents the range within which the share price may be expected to vary. The Company values that have been derived also take into account terminal EBIT multiples. Thus the computed value of the Company that has been obtained is a realistic estimate, taking into account both market value as well as actual values, also factoring into the equation values of acquisitions, short and long term debts, depreciation percentages and even including corporate overheads that may be anticipated in the case of a merger where extra compensations may have to be made. The value of the Company equity that has been derived from the two way table of discounted cash flow valuation is therefore a realistic valuation of the Company value, which ahs then been subdivided into individual stock values taking into account the number of stock holders that currently exist. Thus the value of Warner stock that has been derived is an accurate estimate, taking into account all financial factors and

Check these samples - they also fit your topic

Developing Strategic Management and Leader ship skills: A Case Study of 'The Fall of IBM'
The researcher of this essay aims to pay special attention to Business Management Theory in Organizations. The current research is being carried out to evaluate and present Meeting Strategic Objectives in Business Management, Styles of Business Management and Adapting Management to Situational Challenges.
18 pages (4500 words)Essay
Organizational ledership at the Huffington Post
This paper is a review of Arianna Huffington’s life and organizational leadership style depict a portrait of an extremely powerful, well connected, and successful woman who has achieved a position of strength in America’s cultural, political, and corporate environments that few other figures in history have achieved.
31 pages (7750 words)Essay
Misvaluation affect the failure of merger and acquisition activities
The study has also been based on two broad objectives namely: to identify the effect of misvaluation on mergers and acquisitions as well as to analyse the role of mergers and acquisitions in the competitive business environment. The literature reviewed showed that mergers and acquisitions do not guarantee success of a business due to several reasons.
40 pages (10000 words)Essay
Pro Merger And Anti Merger
Mergers and acquisitions have high chances of failure. The corporate culture or the cross cultural management is the key factor behind successful integration of two organizations.
17 pages (4250 words)Essay
BAE Systems-EADS Merger Plan
“A merger can refer to any takeover of one company by another, when the businesses of each company are brought together as one” (Coyle 2000, p.2). A look into the recent history proves that strategic alliance has best served the interests of many companies at the verge of extinction.
4 pages (1000 words)Essay
AOL Time Warner: Deal of the Century Turns into Disaster of a Lifetime
The merger was not only the conglomeration of some technology with some media, but essentially the first shot across the bow of the 21st century media landscape. It meant that consumers could get their entertainment and news through the global Internet network.
4 pages (1000 words)Essay
Aol Time Warner Merger By Nina Munk
Others were been less enthusiastic, noting that the conglomerate had a market value of US$300 billion in January 2000 but had slumped to US$105 billion two years later. In September 2003 that dissatisfaction was manifested through the Board's decision to remove 'AOL' from the AOL Time Warner corporate title.
5 pages (1250 words)Essay
Merger Of Mittal And Arcelor Steel
The need for consolidation is further substantiated by the economies of scale of operation resulting in improved source of raw materials, access to more markets and countries, better capacity utilization and more flexibility in production scheduling and higher efficiency in production to have better output.
29 pages (7250 words)Essay
Managing Change- Strategies for mergers and acquisition AOL and TIME WARNER
There is a little doubt regarding the issue that changes in a business firm or in a corporate house are felt most in case of mergers and acquisitions. In the case of mergers, two similar sized companies decide to come together for mutual
8 pages (2000 words)Essay
Time Warner and Comcast Merger
According to the paper the enterprise clients should also experience improvement, whilst advertisers will have their focus on one position. While this merger might sound bitter to the regulators, it is actually enticing and from the experience of the customers with cable networks, they should have reason to smile with the emergence of a one giant company. 
4 pages (1000 words)Essay
also assessing the range of fluctuation that is possible.

Summary

Warner was the best Company for Time to merge with and the Company made the right choice. The reasons are that when long term objectives are concerned, Time needed to decide what would be the primary focus of its future business and this was media related. …
The Time-Warner merger
Read TextPreview
Comments (0)
Click to create a comment
Let us find you another Essay on topic The Time-Warner merger for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us