Calling the merger a "perfect fit," Case told reporters the deal will "bring together the best of both worlds and launch the next internet revolution.
In a world where online services, media and entertainment are rapidly converging, the new company could have almost unparalleled resources. For Time Warner, the deal represents a marked departure from previous attempts to become a Net player.
Time Warner abruptly dropped that strategysaying it planned instead to launch a series of "vertical hubs" focusing on topics such as news and personal finance.
Its first niche hub to launch was Entertaindom. AOL, the clear leader of dial-up Internet service providers, has been positioning itself for the impending broadband explosion, cutting deals with satellite delivery firms and telecommunications companies that offer digital subscriber line DSL services.
The companies said that, with respect to broadband access, AOL Time Warner will be committed to giving consumers a choice of ISPs and content, and they hope this merger will persuade all companies operating broadband platforms to also open their pipes to competing ISPs.
Michael Kelly said at the news conference. Steve Case, the chairman and chief executive of AOL, will become chairman of the board of the new company. As chairman, Case will play an active role in helping to build and lead AOL Time Warner, focusing particularly on the technological developments and policy initiatives driving the global expansion of the interactive medium.
Levin will report to the board, which will consist of 16 members, with eight appointed by each of the current AOL and Time Warner boards.
Gerald Levin, Time Warner Employees: Analysts said that the Net landscape is likely to change rapidly over the course of the year as large capitalized Internet firms look to acquire media companies. The transaction is subject to certain closing conditions, including regulatory approvals and the approval of AOL and Time Warner shareholders.
With the completion of the merger, AOL Time Warner will be positioned to speed the development of the interactive medium.
Among several marketing agreements, CNN.Jan 10, · The merger, the largest deal in history, combines the nation’s top internet service provider with the world’s top media conglomerate.
Time Warner America Online: Note: Pages will open in a. Jan 10, · In a stunning development, America Online Inc. announced plans to acquire Time Warner Inc.
for roughly $ billion in stock and debt Monday, . Jan 11, · A decade ago, America Online merged with Time Warner in a deal valued at a stunning $ billion.
It was then, and is now, the largest merger in American business history.
The Internet, it was believed, was soon to vaporize mainstream media business models on the spot. The Merger between Time Warner and AOL occurred in and represented the combination of a Media and Entertainment Conglomerate (Time Warner) with a company operating in the Internet segment (AOL) that was experiencing some outstanding growth.
On March 12, , Time Warner Inc. announced the separation of Time Warner Cable Inc. through a tax-free spin-off. On March 27, , Time Warner Inc.
effected a 1-for-3 reverse stock split. WarnerMedia is comprised of HBO, Turner and Warner Bros. Together, these business units are leaders in the industry in creating premium content, operate one of the world’s largest TV and film studios and own a vast library of entertainment content.
WarnerMedia is one of .