o deliver sustainable growth and offer superior returns to its stakeholders. One of Time Warners major goals is to use demographics, globalization, and technology in order to segment its markets. It is possible that AOL is just another "piece of technology" that Time Warner wishes to use. Time Warner has traditionally been a structured organization and has only recently started to stress a culture in which teamwork and innovation are encouraged. AOL, on the other hand, stresses innovation and entrepreneurial ideas to keep up with the fast paced industry and may feel impeded by Time Warner's limited vision. The merger will force compromise between the two companies and each will possibly have to sacrifice a former goal for the greater good.As with most mergers of this size, the new divisional structure will be highly problematic. Although both AOL and Time Warner currently utilize a divisional structure successfully, the new company will face difficulties in implementing an effective structure. Both companies currently utilize their divisions as separate autonomous companies, free to make their own decisions. For example, currently Time Warners divisions are headed by separate presidential positions. Many of the benefits suggested by the merger hinge of the effectiveness of former AOL divisions using their technologies with former Time Warner divisions, or vice versa. For example, in order for AOL to successfully market any of Time Warners media productions online, the associated Time Warner division must give up some autonomy. Inter-departmental communication will be essential for any of these projects.Conclusions about possible troubles in this merger can be drawn from past mergers. The original merger between Time, Inc. and Warner Communications, Inc. provided problems that turned out to plague the company for years. The company had more assets than it could manage, the leadership was lacking, and the cultures did not coordin...
