Merger of top companies: -ExxonMobil -Sirius XM Satellite Radio -Sears Kmart -Sprint Corporation and Nextel Communications -Mattel & Learning Co. -DISNEY-PIXAR -AOL Time warner Corporate Restructuring- MBA-IIUC Team Leader: MD.RABIUL HOSSAIN

1. Welcome to the Presentation on
Merger of Top Companies
Presented by:
Group “E”
Course : Corporate Restructuring (FIN: 5503)
Spring : 2018
Masters of Business Administration
International Islamic University Chittagong (IIUC)
Presented to:
Mr. Manjurul Alam Mazumder
Assistant Professor
Department of Business Administration
International Islamic University Chittagong (IIUC)

2. Team Members
MATRIC ID NAME COMPANY NAME
R172191 MD. RABIUL HOSSAIN ExxonMobil
R172194 MD. SAZZADUL ISLAM Sirius XM Satellite Radio
R172270 MASUDUR RAHMAN Sears Kmart
R172190 JAHAD HOSSAIN Sprint Corporation and Nextel
Communications
R172193 ZAKIR HOSSAIN Mattel & Learning Co.
R172186 AMINUL ISLAM DISNEY-PIXAR
R172188 MD. MIZANUR RAHAMAN AOL Time warner

3. A successful merger
Presented by: MD. RABIUL HOSSAIN
Matric ID: R172191
Program : RMBA (Spring 2018)
Major : Finance and Banking

4. • Name: Exxon Mobil Corporation
• Founded: November 30, 1999; 18 years ago
• Headquarter: Irving, Texas, USA
• CEO: Darren W. Woods
• He has a bachelor's degree in electrical engineering from
Texas A&M University, followed by an MBA from North
western's Kellogg School of Management.

5. Products of the companies:

6. Reasons for Merger:
• Be in a more strategical position to invest in programs
involving large expenses with high risks and returns
• It would result in a fringe benefit
• To cover a wide area of market
• To adapt to the massive changed forces of
globalization, transformations, and technological
innovations

7. Type of Merger:
Exxon Mobil merger was a great example of a
horizontal merger.
In particular Exxon Mobil increased market share
quickly, Exxon and Mobil were direct competitors
in at least 40 metropolitan U.S. areas in 1999, the
mergers expected savings was about $2.8 billion a
year and together the merger formed the third
largest company at the time.

8. Post-Merger Performance:
• In 2005, ExxonMobil's stock prices run
simultaneously with rising oil prices and result in
annual income profit of US $ 36 billion (up 42% from
previous year).
• After 2005, ExxonMobil enhanced its stock price
growth.
• It can be stated that the merger of Exxon and Mobil
is a successful merger for both company long-term
economic growth

9. Welcome to
Sirius XM Satellite Radio
Prepared By:
MD.SAZZADUL ISLAM
R-172194
Program: MBA
Major: Finance and Banking

10. Overview of the company
• Name: Sirius XM Satellite Radio
• It is an American Broadcasting company that provides three Satellite
radio and online radio services operating in the United States: Sirius
satellite radio, XM satellite radio, and Sirius XM Radio.
• Headquarter: New York City, New York, United States.
• Employee: 2323

11. CEO of the Company:
•James E. Meyer

12. Logo of the Company:

13. Pre-Merger
Sirius satellite radio:
Sirius satellite radio was a satellite radio and online
radio service operating in North America.
Established: 17 may, 1990.
Founder:
Martine Rothblatt
David mergolese
Robert Briskman
Employee: 1514 (According to their Website.)
Headquarter: New York City, New York,
United States

14. XM satellite radio:
XM satellite radio was one of the three satellite
radio and online radio service in united states and
Canada.
Established: 1988
Headquarter: Washington D. C.

15. Reason for Merger
1. It is being touted as a "merger of equals," but in fact, Sirius is buying XM
for nearly $4.6 billion in stock. ( Source: Bloomberg )
2. Sirius and XM's receivers are incompatible: it won't be elementary to
combine the two services, and to get both, you'll probably have to buy a new
receiver. The companies have promised to merge channel lineups, however,
letting customers pick and choose on an "a la carte" basis.
3. Sirius offered one-time payments for a lifetime subscription, but tied it to a
receiver. These users could be offered deals to add XM or upgrade their
receiver, or could be told that one-time payment forever applies only to
Sirius-branded content on the original box. What deal will the merged giant
offer?

16. 4. The merger effectively creates a local monopoly in digital
radio (excepting that provided through cable television services.)
Under scrutiny from the Justice Department and FCC, Sirius and
XM may claim to be competing not with each other, but with
iTunes and other music download services. If they do, might it
have consequences for XM's claim that they aren't a download
service, in regard to an RIAA lawsuit? However it pans out, the
phrase "regulatory hurdles" could haunt the deal for months.
5. Channels will die. There's a lot of duplicated content across
the two networks. It'll be interesting to see how closely culling is
tied to ear count and ego.
6. Though XM has more subscribers (XM has claimed 7.6
million to Sirius's claimed 6 million) and had more than double
Sirius' revenue in 2005, Sirius recently boasted about its
economic performance and climbing subscriber base. Both
companies have been losing money hand-over-fist for years,
however: Shares for both declined about 50 percent last year.
Sirius is worth $5.2 billion, while XM was recently valued at
$3.75 billion. (Compare the buyout price!)

17. 7. Sirius was originally called Dog Radio, and was founded
in 1990. XM was originally called American Mobile
Satellite Corp, and was founded in 1988.
8. The elliptical orbit of Sirius's satellites causes trouble for
customers who receive their Musak-like business music
service through stationary antennas. Sirius is launching a
geostationary satellite just for them.
9. Sirius' and XM's press release contained a boilerplate
legal disclaimer about "Forward Looking Statements,"
listing the words "anticipate," "believe," "plan," "estimate,"
"expect," "intend," "will," "should," "may," as ones that
predicate statements the reader should take with a pinch of
salt.
10. World star serves satellite radio to Europe, Africa and
the rest of the world. With about a hundredth of the merged
giant's revenues, it doesn't compete in its home market,
instead licensing a few select channels to XM.

18. Reason for success:
• “The two companies, which have a combined 14
million subscribers, said they had not yet
determined a new name for the combined
company or where its headquarters would be
located.” —CNN Money
• Therefore, if these numbers can be believed, XM
had 13.4 million subscribers and Sirius had 0.6
million subscribers when the merger happened.
• You can judge “successful” a lot of ways; they
were both losing money before the merger and
the new company is reportedly solidly in the
black now.

19. International Islamic University Chittagong (IIUC)
Masters of Business Administration
Presented By:
Name : Md Masudur Rahman
ID No: R 172270
Section: FIN (B)
Sears Kmart

20. Sears Kmart

21. • Appliances
• Auto
• Baby Items
• Clothing
• Electronics
• Fitness Items
• Home Decor
• Jewelry
• Mattresses
• Outdoor
• Parts & Services
• Shoes
• Tools & More
Pre-Merger Products of Sears

22. • Appliances
• Baby Items
• Clothing
• Electronics
• Grocery
• Health & Beauty
• Home Decor
• Jewelry
• Mattresses
• Outdoor
• Shoes
• Sports
• Toys and more
Pre-Merger Products of Kmart

23. Combining Sears and Kmart into a major new retail company named
Sears Holdings Corporation. Sears Holdings is the nation's third largest
retailer, with approximately $55 billion in annual revenues and a
national footprint of nearly 3,500 retail stores in the United States,
including 2,350 full-line and off-mall stores, and 1,100 specialty retail
stores.
Post-Merger

24. • The Sears and Kmart merger is an illustration of 2 failing brands
trying to correct problems by combining weaknesses.
• There two mid level employee were preparing quarrel or noise
eachother
Reasons for Merger

25. • The real issues facing Sears and Kmart in their new roles as retail
partners revolve around brand and not6 so much around the values
of their real estate
• Sears and Kmart don’t suffer from lace of awareness or physical
locations
• They were aiming at today’s consumer rather than thinking of
tomorrow.
• They didn’t anticipate.
• They didn’t keep up.
Reason behind failure of Sears Kmart Merger

26. Presentation on
Merger of Sprint Corporation and Nextel
Communications
Prepared by
Jahad Hossain
ID :R172190
Sec: II (FIN)
Program: MBA

27. Sprint Corporation is a United States
telecommunications company that provides
wireless services and an internet service provider.
It is the fourth-largest mobile network operator in
the United States and serves 54 million
customers as of October 2017.

28. Nextel Communications, Inc. was a wireless
service operator that merged with and continues
to exist as a wholly owned subsidiary of Sprint
Corporation. Nextel in Brazil, and formerly in
Argentina, Chile, Peru, the Philippines, and
Mexico,[3] is part of NII Holdings, a stand-alone,
publicly traded company

29. Pre merger product
Sprint
• Mobile devices
• Sprint branded services
• SprintLink
• Sprint Web Services
Nextel
• iDEN
• Push to talk
• WiDEN

30. Post merger product
• Ethernet services
• Sprint Prepaid Group
• LTE
• LTE Plus (formerly Sprint Spark)
• Sprint Music Plus

31. Reason for merger
• The merger was transacted as purchase of Nextel Communications by
Sprint Corporation for tax reasons;
• Another reason is Sprint and Nextel opportunities from regional
scope that provided wireless services on behalf of the companies.

32. Post merger performance
1) The hypothesis is introducing the NFL package to Sprint Nextel phones
boosted overall financial performance of the merger.
2) The outcome variable is Sprint Nextel’s long-term financial performance in
that merger’s profits measures by product and customer usage. The walkie-
talkie phones with the enhanced NFL feature gave a $4 billion revenue to
the NFL
3) The merger contains many predictor variables in the forms of product
capital, selection, and deployment. The variables are measure by customer
demand, consumption and sales.

33. Sprint Nextel’s Financial Failures
• largest price drop in 2007
• Intense competition from Verizon Wireless and AT&T.
• Sprint Nextel lost many customer fascinated by the VCast service and offers with Verizon
Wireless, and by the Apple Iphone
• Sprint CEO Gary Forsee left in October 2007
• Company external problems spread to the company’s internally
• In January 2008, Sprint Nextel announced it would cut 7 percent of the company’s
workforce and close 125 retail stores to ensure is survival in this economic downturn
closing of the stores caused average sales of phones to drop. The only situation where
Sprint Nextel recovered from the drop was when it owned 49 percent of Virgin Mobile
(USA) The only option the Sprint Nextel employees had was to leave the organization or
to operate in a more remote location.

34. WELCOME TO
Mattel & The Learning company
Prepared By:
Md. Zakir Hossain
R-172193
Program: MBA
Major: Finance and Banking

35. Overview of the company
• Name:Mattel
• It is an American Multinational toy
manufacturing company founded in 1945. 1945
with headquarters in El Segundo, California The
company has presence in 40 countries and
territories and sells products more than 150
countries. The company operates three business
segments.North America International, and
America girl. It is the second largest toy maker in
terms of revenue after the

36. :
Outlook:
Type Public
Traded as NASADAQ: MAT
S and P 500 Component
Industry Entertainment
Founded January 1945; 73 Years ago
CEO Ynon Kreiz(Chairman)
Products Dolls,Toys,Games
Production output Animation
Revenue $5.456 billion (2016)
Operating Income $19.23 Million
Net Income $318.02 Million
Total Asset $6.439 billion (2016)
Total Equity $2.407 billion (2016)
NO. Of Employees 32000(2016)
Website Mattel.com

37. Logo of the Company:

38. CEO of the Company
Justin Moser
Education:
Northwestern University- kellogg school of
Management

39. • Name: The Learning Company:
• TLC is an American educatiiol software company,
currently owned by Houghton Mifflin Harcourt.
It produced a great based system of learning
software and tools to improve productivity. The
company is also known for publishing licensed
educational titles featuring characters such as
Arthur, Scooby-doo, Zoboomafoo . and caillou

40. • TypeSubsidiary
• Founded 1980, 38 years ago (as the
learning company),Palo Alto, California,
U.S
• Founder Ann McCormick Leslie Grimm
• Headquarters Bustan, Massachusetts,
U.S
• Key people Warren Bobbinets (co-
founder)
• Products Education Games
• Parents Houghton Miffing Harcourt
• Website
www.learningcompany.com
Outlook:

41. Logo of the Company:

42. R. Scott Murray
CFO of the Company

43. Pre-Merger
• Mettel Inc. and The Learning company Merger
Mattel purchase the learning company in 1999 for$ 3.5 billion but
sold it in 2000 at a loss. The company had a $ 430.9 million net loss
on that year.

44. Product names mettle before merger
• Agent Zero: Camera to pistol
• Aladdin: Film toy figures
• Aladdin
• Burble
• Battle star
• Bugs Bunny: Talking doll
• Captain kangaroo
• Computer warriors
• Casper the friendly ghost
• Doctor to do-little
• Extreme Dinosaurs
• Jack in the box
• See n say

45. Products names of TLC before Merger
• Treasure Mountain(1990)
• Treasure Math tom(1992)
• Treasure Galaxy (1994)
• Fisher price: Dream dollhouse (1995)
• Rock’s Booth (1982)
• Achieve! Math & Science : Grades 3-6

46. Products names of Mettle& TLC after merger
• The clue finders 4th grade adventures (1999)
• The clue finders search and solve adventures
• Fisher price: Time to play pet shop
• prince of Persia
• Fisher price
• Burble
• Monster High
• American girl
• Board games

47. Reason of Merger between Mettle & the Learning Company
• Metal Inc.’s move to buy the learning of toys and software,
according to one executive involved in deal. O’ Leary said that
children’s toys will be much more interactive as technology
becomes more advances and pc’s become cheaper.
• “One day we could have an interactive Burble or interactive
Rabbit. Instead of being on a screen, children could interact
with [Reader Rabbit] as a plush toy that can change its
content by downloading information from the internet, he
said’ Leary would not say how long it would take for such a
toy appear. When it does, the two have a well-established
strategy for selling it on the internet. Mattel and TLC intended
to exploit the combine company reach. We are looking selling
our products to consumer over the internet in the near
future. He said” Together we reach almost every home in
America with our products. O’ Leary told ZDNN that TLC had
already processed 15 million transaction over its web site this
year. A figure he expect with double in next year.

48. Reason of failure
Meanwhile Mattel’s profit problems hurt shares
of both companies, despite the news of the$ 3.8
billion stock SWAP. Share of the learning
company fell 115/16 to 26 3/8 and Mattel
(NYSE:MAT) plunged 20% to2311/16 took a hit
after Mattel said sales will be flat this year as
profit were being squeezed by an inventory
problems. The Acquisition of the learning
company gives Mattel such software titles as
Reader Rabbit. Mattel said it will now have a $1
billion interactive software business with the
learning company’s$ 850 million in estimated
1998 sales in the field

49. Post-Merger Performance
Mattel CEO Jill barnyard said the company expects to have direct
internet sales for all of its brands and projects a $1 billion in sales in
online over the next few years. “We have systems prepared for the
end of the first quarter able to have online transaction take place
across all our brands,”said Barn ad. “Because of Talc we can merge
that all together and be more aggressive.

50. Prepared By
Name : Md. Aminul Islam
ID No. : R172186
Semester : 5th (Spring’18)
Major : Finance & Banking
The Merger Company is
Department of Business Administration
Faculty of Business Studies
I n t e r n a t i o n a l I s l a m i c U n i v e r s i t y C h i t t a g o n g

51. Logo of the Company:
Outlook:
The Walt Disney Studios corporate headquarters in Burbank, California Type Public Traded as NYSE: DIS
DJIA Component S&P 100 Component S&P 500 Component Industry Mass media Entertainment Predecessors
Laugh-O-Gram Studio (1921)
The Walt Disney Company, commonly known as Disney (/ˈdɪzni/) is an American
diversified multinational mass media and entertainment conglomerate, headquartered at the Walt Disney
Studios in Burbank, California. It is the world's second-largest media conglomerate in terms of revenue,
after Comcast. Disney was founded on October 16, 1923 – by brothers Walt and Roy O. Disney – as the Disney
Brothers Cartoon Studio, and established itself as a leader in the American animation industry before
diversifying into live-action film production, television, and theme parks.
Current owner of Disney:
Robert A. Iger is Chairman and Chief Executive Officer of The Walt Disney Company. As Chairman and
CEO, Mr. Iger is the steward of one of the world's largest media companies and some of the most respected
and beloved brands around the globe.

52. • NEW YORK (CNNMoney.com) - Mickey Mouse and Nemo are now corporate cousins. Walt Disney has announced that it is buying Pixar,
the animated studio led by Apple head Steve Jobs, in a deal worth $7.4 billion.
• Speculation about a deal being imminent raged on Wall Street for the past few weeks. Disney has released all of Pixar's films so far, but the
companies' current distribution deal was set to expire following the release of this summer's "Cars." The merger brings together Disney's
historic franchise of animated characters, such as Mickey, Minnie Mouse and Donald Duck, with Pixar's stable of cartoon hits, including the
two "Toy Story" films, "Finding Nemo" and "The Incredible.“
• Disney and Pixar can now collaborate without the barriers that come from two different companies with two different sets of shareholders,"
said Jobs in a statement. "Now, everyone can focus on what is most important, creating innovative stories, characters and films that delight
millions of people around the world."
• "The addition of Pixar significantly enhances Disney animation, which is a critical creative engine for driving growth across our businesses,"
said Disney CEO Robert Iger in a written statement.
Before Merger Product

53. • Disney - Pixar Merger (2006) Background of the Companies Walt Disney Pixar Walt Disney is one of the leading companies in the world that
provides entertainment experience since its founding in 1923. Four Business Segments: Walt Disney studio produces animated features and
live-action motion pictures distributes Disney and other films to the rental and home entertainment markets to the world one of the largest
producers of Broadway musicals - Disney on Ice
- Disney Live Entertainment produces original music and motion picture soundtracks Parks and Resorts the first park was established in 1952
it includes Disney Cruise Line
eight Disney Vacation Club resorts also has five resort locations which composed with 11 theme parks on three continents Media networks
presents a wide array of broadcasting, cable, radio, publishing and Internet businesses.
• Mergers and Acquisitions. Methods by which corporations legally unify ownership of assets formerly subject to separate controls.
A merger or acquisition is a combination of two companies where one corporation is completely absorbed by another corporation.
P o s t M e rg e r P r o d u c t

54.  As it was the thought the acquisition happened when Disney announced on the January 24, 2006 that it had agreed to buy Pixar fro
approximately $7.4 Billion in an all-stock deal. Following Pixar shareholder approval, the acquisition was completed May 5, 2006. The
transaction catapulted Steve Jobs, who was the majority shareholder of Pixar with 50.1%, to Disney largest individual shareholder with 7%
and a new seat on its board of directors. Jobs’ new Disney holdings exceed holdings belonging to ex-CEO Michael Eisner, the previous top
shareholder, who still held 1.7%; and Disney Director Emeritus Roy E, Disney, who held almost 1% of the corporation’s shares. As a result of
the Merger, each of the Pixar shares had been converted into the right receive 2.3 shares of the Walt Disney company common stock.
 Company have merged:
 The good…
 Disney & Pixar. Mickey and Nemo. ...
 Sirius & XM radio. ...
 Exxon & Mobil. ...
 New York Central & Pennsylvania Railroad. ...
 Daimler Benz & Chrysler. ...
 Yahoo & Facebook (almost!) ...
 AOL & Time Warner. ...
 Quaker & Snapple.
R e a s o n s f o r M e rg e r

55. • Disney's existing contract to distribute Pixar films was slated to end in 2006 and Pixar had announced two years earlier it would not renew
the arrangement.) It was a bold push towards the future. A few years later, Iger made another successful deal to buy Marvel Entertainment
for $4 billion in 2009.
• When Robert Iger, Disney chair and CEO, purchased Pixar for $7.4 billion ten years ago, some in the industry thought he was crazy. The
Disney empire was rooted in animation, and its classic characters — Mickey and Minnie Mouse, Donald Duck, Goofy, the Disney princesses
— are some of the best-known, and most beloved characters in the world. Yet Disney Animation needed some breakthrough ideas.
• Iger used the Pixar and Marvel purchases to convince George Lucas to sell them Lucas film (for about $4 billion) in 2012. That deal brought
the Stars Wars and the Indiana Jones franchises within Disney’s fold.
• The three acquisitions revitalized Disney’s creative juices, and has allowed Disney to monetize these popular characters through as many
outlets as possible — theme parks, movies, toys — as only Disney has proved able to do. For instance, the Avengers is a successful movie
franchise but it is also monetized in Disney’s theme parks. This strategy has been, in itself, Disney’s great breakthrough innovation.
R e a s o n s f o r s u c c e s s

56. • In late 2005 and early 2006, rumors began circulating that The Walt Disney Company and Pixar Animation
Studios were discussing a merger (La Monica, 2006). The two companies were previously connected via
distribution agreements and other partnerships, but the relationship soured significantly over creative
differences and a contentious personal relationship between Steve Jobs, the chief executive of Pixar, and
Michael Eisner, former chief executive of Disney (Fonda, 2006). However, after Bob Iger took over
leadership of Disney, conversations between the two creative powers resumed, and ultimately yielded a
January, 2006 announcement that Disney was acquiring Pixar (Fonda, 2006).
• The stock deal between the two corporations placed a $7.4 billion price tag on Pixar (Holson, 2016). Disney
issued 2.3 shares for every one share of Pixar stock, which based on their respective stock prices valued Pixar
shares at $59.78 (Holson, 2006). This represented a 3.8% premium over the Pixar stock price of $57.57, and
some within Disney and on Wall Street questioned the elevated price (Holson, 2006).
• The merger created significant structural changes to the management of both firms. Steve Jobs became a
board member at Disney, and their largest individual shareholder due to his prior large stake (50% of shares
outstanding) in Pixar (La Monica, 2006). John Lasseter, the highly respected creative manager at Pixar,
became the chief creative officer for the Pixar and Disney Animations Studios, and advised Disney’s
Imagineering division, which creates rides and other experiences at Disney theme parks (Holson, 2006).
Pixar’s president, Edward Catmull, would manage both Pixar’s studios and Disney’s after the merger
(Holson, 2006). Other key managerial and structural changes occurred, but all were framed around
maintaining Pixar’s independence, to preserve their culture and expertise (Holson, 2006).
P o s t M e rg e r P e r f o r m a n c e

57. Welcome to
AOL Time warner
Prepared By:
MD: Mizanur Rahman
R-172188
Program: RMBA
Major: Finance and Banking

58. AOL
AOL (formerly a company known as AOL Inc., originally known as America
Online, and stylized as AOL) is a web portal and online service provider based
in New York. It is a brand marketed by Oath , a subsidiary of Verizon
Communications. AOL was one of the early pioneers of the Internet in the mid-
1990s, and the most recognized brand on the web in the United States
• Established:10 January, 2000
• Headquarter: New York City, New York, United States
• CEO: Tim Armstrong
• Services: web portal and online service provider.

59. Time Warner
Time Warner, Inc. (stylized as Time Warner since 2003) is an
American multinational mass media and entertainment conglomerate
headquartered in New York City. It is currently the world's third largest
entertainment company in terms of revenue, after Comcast and The Walt
Disney Company. It was also once the world's largest media
conglomerate. Time Warner was first founded in 1990, with the merger
of Time Inc. and Warner Communications.

60. Time Warner(Cont.)
• Established: January 10, 1990;
• Headquarter: New York City, New York, US
• CEO: Jeff Bewkes.
• Services: Film and Television ( HBO, Turner Broadcasting System, CNN,
Warner Bross, TheCW etc.

61. Reason for Merger
• On Jan. 10, 2000, the Internet service company AOL and the media giant Time Warner announced
that AOL would buy Time Warner for more than $160 billion in the largest merger in corporate
history.
• The New York Times called the deal “the best evidence yet that old and new media are
converging” and speculated that “it could be the Internet companies that do the buying and the old
media that sell out.”
• The merger gave Time Warner new platforms for its media properties like Time, People, Fortune,
Warner Entertainment, HBO and CNN. In turn, Time Warner gave AOL access to its cable systems,
which allowed for “much speedier Internet and interactive television services.”

62. Reason for Merger(Cont.)
• However, the new company, AOL Time Warner, did not live
up to its potential. The merger occurred at the height of
the “dot-com bubble,” a time when AOL’s value was
grossly inflated. Its stock price plummeted within a few
years of the merger, causing huge losses for AOL Time
Warner. Furthermore, the AOL and Time Warner divisions
remained at odds with each other and did a poor job
integrating their products.
In 2009, Time Warner decided to spin off AOL as its own
company again, ending their ill-fated relationship. But,
as The Times noted, “The merger between AOL and Time
Warner will likely remain a prominent part of both
companies’ legacies, rather than becoming a historical
footnote. After all, more than $100 billion in shareholder
value was wiped out.”
• In 2011, AOL bought The Huffington Post, the news,
aggregation and commentary Web site, for $315 million.

63. Post merger Product/services
• Cable Television Networks: HBO, TBS, CNN
• Music: Atlantic, Warner, Bros, Music, Elektra
• Publishing: Fortune, Time, Little Brown & Inc.
• Internet: America online

64. Failure of AOL Time Warner
merger
• Untested assumptions are taken as facts.
• Few opportunities exist for inexpensive, low-
commitment testing.
• Leaders are convinced they have the answer and
not willing to change course.
• Huge up-front investment, rather than a staged or
sequenced flow of resources.
• Massive uncertainty and a sense of time pressure.