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    Kevin Paul
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    The merger between AOL and Time Warner that was touted as the "deal of the century" at the turn of the millennium turned out to be one of the worst deals ever. After nearly 10 years together, AOL left Time Warner as it was never an equal partner due to being overvalued by the internet bubble at the time of the merger. Meanwhile, Exxon and Mobil formed ExxonMobil in a $81 billion merger in 1999 to become the largest oil company in the world, though the FTC required asset sales to avoid monopolization issues.

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    The merger between AOL and Time Warner that was touted as the "deal of the century" at the turn of the millennium turned out to be one of the worst deals ever. After nearly 10 years together, AOL left Time Warner as it was never an equal partner due to being overvalued by the internet bubble at the time of the merger. Meanwhile, Exxon and Mobil formed ExxonMobil in a $81 billion merger in 1999 to become the largest oil company in the world, though the FTC required asset sales to avoid monopolization issues.

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    13 views1 page

    Merger

    Uploaded by

    Kevin Paul
    The merger between AOL and Time Warner that was touted as the "deal of the century" at the turn of the millennium turned out to be one of the worst deals ever. After nearly 10 years together, AOL left Time Warner as it was never an equal partner due to being overvalued by the internet bubble at the time of the merger. Meanwhile, Exxon and Mobil formed ExxonMobil in a $81 billion merger in 1999 to become the largest oil company in the world, though the FTC required asset sales to avoid monopolization issues.

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    of 1

    M&A NEWSLET TER

    V OLUME 1, I SSUE 1 22/11/2011

    M ARRIAGE

    FROM HELL

    THE BREAKUP OF

    TIME WARNER AND AOL

    It didn't last a decade. After nearly 10 very difficult years, AOL finally left the house of Time Warner. Today, it is on its own again. The union, consummated at the height of the internet bubble, was touted as the "deal of the century" the perfect marriage of old and new media. It is now considered the worst deal of all time. One main reason was that AOL was never a equal for Time Warner. At the time of the merger AOLs stocks were over valued due to the internet bubble. Since AOL turned out to be an unequal partner AOL Time Warner changed its name back to Time Warner. Meanwhile most of AOLs board have been replaced whereas many of Time Warners directors are in charge.

    A few funny suggestions for corporate mergers:


    Yahoo and Netscape-to be called Net'nYahoo 3M and Good year, to be called MMM-Good Federal Express and UPS, to be called FED UP Denison Mines, Alliance, and Metal Mining to be called Mine, All Mine

    B IG O IL G OT E VEN B IGGER

    In 1999 Exxon and Mobil signed an $81 billion agreement to form ExxonMobil which became the largest oil company in the world.The merger was so big, in fact, that the FTC required a massive restructuring of many of Exxon and Mobils gas stations, in order to avoid outright monopolization. In 2008, ExxonMobil occupied all ten spots in the Top 10 Corporate Quarterly Earnings (earning more than $11 billion in one quarter) and it remains one of the worlds largest publicly held companies (second only to Wal-Mart).

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