will have close to $40 billion in revenue and $300 billion in market value. This makes them the fourth most valuable company behind Microsoft, GE, and Cisco Systems.(Holstein, 36) As shown in this research paper, AOLs profits have been soaring before the merger, while Time Warner has always experienced steady profits. During the past four quarters, AOL earned $715 million on $5.25 billion in sales, while Time Warner earned nine times as much, $6.4 billion, on $23.5 billion in sales.(Holstein, 38) With the merger of two successful companies, the resources generated from before the merger will only serve to give the combines company, AOL Time Warner, the ability to execute its strategic plans. The merger between these two companies will give the company increased advantages in their current markets. AOL Time Warner will have access to numerous media types such as print and cable in addition to its Internet service. As a result, there are many opportunities for not only cross selling, but cross-promotion, cross marketing, and product tie-ins. Since the new company will offer several different products and services throughout a wide range of markets, it will be able to take advantage of advertising across each niche. For instance, the new movie U-571, which is being heavily promoted on many television networks, is a Time Warner film. At the end of the preview, the ad exclaims, "go to AOL Keyword U-571" for more information on this movie. This provides a prime example of how AOL and Time Warner will be able to work in unison to help promote its products and services.As well, the merger will provide AOL Time Warner to attain greater market share in its perspective industries. The merger signifies its beliefs that a new market or industry will form due to impending technology, primarily broadband technology. Broadband technology is the technology that is developing to provide the higher speeds for the Internet. This technology will...
