AOL Time Warner: A Merger Gone Wrong |
ICMR HOME | Case Studies Collection
»
Business Strategy Case Studies Please note: |
||||
"Thank God, it was as if it was the middle ages and we had been leeched for three years. There was almost no blood left." - A Time Warner Executive, expressing relief at the resignation of Steve Case, in January 2003.1 "If you look out 10 to 15 years, I think people will look back and have a different view on this merger." - Steve Case, Chairman, AOL TW, commenting on his resignation, in January 2003.2 "You have got to get over that. You cannot go back and undo the past. We are where we are and the question is, how do we build value back, going forward?" - Richard Parsons, CEO, AOL TW, in January 2003.3 An Unceremonious DepartureOn January 12, 2003, Stephen M. Case (Case, popularly known as Steve Case), the chairman of AOL Time Warner Inc. (AOL TW), one of the largest media and entertainment companies in the world, announced his decision to step down from his post in May 2003. Case said, "Although I prefer being Chairman and I will miss not being Chairman and I am obviously disappointed by it, I still will continue to play a role."
The fact that Case sold a major part of his AOL stock soon after the merger was announced in January 2000 (when the price of the stock was high) and made an estimated profit of $ 160 million evoked suspicion and anger among shareholders. They thought that Case was aware of the fate of the merger and accused him of making money, when the time was right, at the expense of the shareholders.
AOL Time Warner: A Merger Gone Wrong - Next Page>>
1] Newsweek, January 13, 2003. |
Case Studies Links:-
Case Studies,
Short Case Studies,
Simplified Case Studies.
Other Case Studies:-
Multimedia Case Studies,
Cases in Other Languages.
Business Reports Link:-
Business Reports.
Books:-
Textbooks,
Work Books,
Case Study Volumes.