Last Updated Jun 13, 2018 3:16 PM EDT The last time $100 billion was spent buying Time Warner was back in 2000, when the media giant joined forces with the dotcom-era darling AOL in a stock-based merger that proved so disastrous it's widely seen as the worst corporate marriage in history.It turned out that after the dotcom crash, an overly inflated AOL was forced to take a monstrous goodwill write-off of nearly $99 billion on Time Warner in 2002. AOL's market value slumped from $226 billion to around $20 billion. A few years later Time Warner spun off its Time Warner Cable division and then AOL as independent companies. The vastly shrunken AOL was acquired by Verizon in 2015 for just $4.4 billion.Looking back, the AOL-Time Warner deal was marred by cultural incompatibilities and AOL's inability to respond to the rise of broadband vs. dial-up internet access. AOL lost its competitive position and couldn't extract the expected financial synergies from the deal. Fast forward … [Read more...] about AT&T-Time Warner deal raises specter of AOL Time Warner deal
Aol time warner
By Gunjan Banerji Gunjan Banerji The Wall Street Journal BiographyGunjan Banerji @gunjanjs [email protected] June 13, 2018 5:30 a.m. ET 1 COMMENTS AT&T ’s T -5.82% victory in its legal battle to buy Time Warner Inc. TWX 2.12% likely handed a win to merger arbitragers, particularly some of Wall Street’s biggest hedge funds, who had bet the deal would go through. The deal has attracted interest from big firms. Hedge funds such as Highfields Capital, Baupost Group, Sachem Head Capital Management, Paulson & Co., Fir Tree, Oz Management, and Pentwater Capital Management all reported holding Time Warner shares in recent regulatory filings. Shortly after 4 p.m. on Tuesday, U.S. District Judge Richard Leon approved the roughly $80 billion merger. The decision sent shares of Time Warner rallying, a boon for merger arbitragers, who buy shares of the takeover target on the bet they will rise to the agreed-upon deal price. The scale of the deal also … [Read more...] about Hedge Funds Are Poised to Be Winners in AT&T-Time Warner Deal
Time Warner also said the deadline for the antitrust review of its deal with AOL has been extended to mid-December, giving the Federal Trade Commission added time to examine this latest development. The deal reached Monday means that subscribers to Time Warner's high-speed Internet cable service will be able to select EarthLink - and not just AOL - as their online provider. The EarthLink arrangement won't take effect until Time Warner and AOL receive regulatory approval and close their deal - which the companies expect to happen at year's end or early in 2001. Time Warner also must complete its negotiations to get out of an exclusivity agreement with Internet provider Road Runner. But the agreement with EarthLink could remove a major stumbling block in the government's review of the AOL Time Warner deal. The FTC has demanded that the merging companies give Internet providers other than AOL access to Time Warner's high-speed cable lines before it approves the deal. The agency wants to … [Read more...] about CBS News Logo Time Warner Cable Offers Competitor
Last Updated Dec 3, 2009 9:00 AM EST We're finally at the point where Time Warner (TWX) is going to spin off AOL, which was originally the acquired in one of the most ill-conceived merger deals of all time. And now what happens? Comcast (CMSA) decides that it isn't satisfied with creating a trend of increasing share prices. No, it sees a vacuum in the really bad idea space, and so will buy a controlling stake in NBC Universal, just because someone apparently had to. And they want to be in pictures. Doesn't everyone? Oh, there will be rationalizations aplenty. Content. Synergy. Vertical entertainment integration. You know -- all those things you heard when AOL was acquiring Time Warner, back when at least some people assumed that such corporate combinatorics were all the rage. But there were some clear reasons why the arguments held as much water as a ripped sieve: Running a distribution business through data pipes, which is what AOL did and Comcast does, is far different from running … [Read more...] about Comcast Not Satisfied With Success, Decides to Become AOL Time Warner
AT&T’s (T) planned $85 billion purchase of Time Warner (TWX) announced Saturday may face some of the same challenges as a megamerger from another era: AOL’s $182 billion acquisition in 2001 of, yes, Time Warner, the parent company of Warner Bros., HBO and CNN and the target of what many veterans of mergers and acquisitions consider to be Wall Street’s worst deal ever. Of course, many circumstances of the two deals are different. AOL was hurt as dotcom mania peaked by its fading dial-up Internet business. Plus, accounting gimmicks had goosed its growth numbers, which caused the combined AOL Time Warner to take a whopping $54 billion write-down in 2003 to reflect its diminishing value. New York-based Time Warner eventually spun off AOL in 2009, and the Internet publisher was acquired in 2015 for a modest $4.4 billion by AT&T rival Verizon (VZ). Verizon now also plans to buy Internet pioneer Yahoo (YHOO) for $4.8 billion. “AOL and Time Warner were about as … [Read more...] about A second big buyout for Time Warner. Should investors run?