...Article 6 A vision Beyond Cable for Comcast After Merger If Chief executive, Brian Roberts, had his was Comcast would not be cable anymore. They have pushing more into the internet side of things. Nextflix has started paying Comcast for faster internet allowing video streaming easier to stream. Comcast wants to be more of a technology company running against Google, Amazon, Facebook and Apple. They don’t want to wait for cable to die out so Comcast needs to find more ways of doing business. Time warner has business in 29 different states and Comcast and Time warner don’t cross and compete. Since they don’t cross this has no impact on competition. This merger size could end up controlling about 30 percent of the national television subscribers. This will also allow them to lower their prices to compete with Netflix. There have been some antitrust law issues which is used to protect consumers. At one point Time Warner blocked CBS and this did not go over well with their customers and they had to fall to CBS’s demands. Comcast is going to help the Time Warner customers in allowing them to gain access to their new Xfinity wireless gateway. The features of Comcast are way better than that of Time Warner, Comcast’s menu options allowed easier navigation to customers favorite content. They also have an app on smartphones to control the guide. Comcast marginally out performs Time Warner Cable, and are preparing for improvements. Saying everything will change once Xfinity service...
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...AT&T Merging with Comcast Tonya Mealey, Teneisha Bonner, and Richard Chan ECON220-X-1302B-02/Professor Luzius July 14th, 2013 Abstract For our group 5 project, we have collected information about the company AT&T merging with Comcast. In this paper, the industry description introduces the company and explains the history of the company. The supportive argument and the argument against the merger are discussed. Keywords: AT&T, Comcast AT&T Merging with Comcast Initially, Comcast proposed to buy AT&T Broadband for 44.5 billion in assets and 13.5 billion in deficit assumption. AT&T’s committee did not accept the acquisition and Comcast offered to merge with AT&T broadband to establish AT&T Comcast. AT&T assets have been dropping and this coalition would probably help them by letting Comcast, which has a great understanding in the broadband business, work with the many resources AT&T has to present. The merger is set at $72 billion. Comcast thinks the coalition with AT&T will keep them rich and it will get 2.2 million broadband consumers and 22 million co responders, news and entertainment supporters. They are evaluating the merger to decide if the aftermath will be an accomplishment or a downfall (Brinkerhoff, 2010). Industry Description: AT&T, is considered to be a telecommunications industry, and is among the world’s premier voice, video, and data communications companies serving millions of consumers, businesses...
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...Time Warner Cable Inc. (TWC), formerly Warner Cable Communications and sometimes colloquially referred to as simply Time Warner, is an American cable telecommunications company that operates in 29 states and has 31 operating divisions. It is the second largest cable company in the U.S. behind only Comcast, which has agreed to acquire TWC pending regulatory approval. Its corporate headquarters are located in the Time Warner Center in Midtown Manhattan, New York City, with other corporate offices in Stamford, Connecticut; Charlotte, North Carolina; and Herndon, Virginia. Time Warner Cable serves customers in the following 29 states: Alabama, Arizona, California, Colorado, Hawaii, Idaho, Illinois, Indiana, Kansas, Kentucky, Maine, Massachusetts, Michigan, Missouri, Nebraska, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, Washington, West Virginia and Wisconsin. Originally controlled by Time Warner (the film and television production company and cable channel operator), that company spun out the cable operations in March 2009 as part of a larger restructuring. Since then, Time Warner Cable has been an entirely independent company; merely continuing to use the Time Warner brand under license from its former parent (it also previously used the "Road Runner" name for its Internet service). Time Warner Cable does own several local news and sports channels, but it no longer has any corporate affiliation...
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...Briefly describe the selected negotiation. AT&T, the second largest mobile provider, has very recently reached an agreement to purchase the media conglomerate Time Warner Inc for more than $85 million. This union comes only two years after AT&T acquired DirectTV, the nation’s largest satellite television provider. The two companies have been in talks about the possible merger since August. This merger will give AT&T, which falls second to Verizon in the mobile phone industry, entrance in the world of media and entertainment. Examine the issues versus the interests of the parties involved. Determine how this difference affected the negotiation. This merger could make AT&T an entertainment empire. The AT&T and Time Warner union comes...
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...helps a company excel during good times and maneuver through tough times. However, having a plan does not always determine the direction the company will go, the strategic plan is more like a map or GPS for the company. There are tons of other variables that drive a company. For instance, having great internal and external environments play a role on how the company will progress. The internal environment entails employees, management, the work culture/mission, and ethics. These components help make or break a company’s morale. If your company’s environment is unhealthy, then it is very possible the strategic plans that would be implemented improperly. The external environment is very important in a company as well, these are variables that occur outside the companies facilities that alter the company’s plans. Companies take their environments’ very seriously, there is a process call environmental scanning which, is an analysis of a company’s internal and external environments. Two companies that were recently researched using an environmental scan were Time Warner Cable and Nike. After an environmental scan it is possible to analyze the competitive advantage of Time Warner Cable and Nike. While, analyzing the competitive advantage, it is possible to see the value and effectiveness of Time Warner Cable and Nike’s business strategies. These two companies are in different industries; Nike being a global shoes and apparel company and Time Warner Cable being the second cable, internet...
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...Acquisition on DirecTV by AT&T Phillip C. Warren, Jr. Professor Daniel Goldsmith BUS 508 – Contemporary Business February 17, 2015 AT&T to Acquire DirecTV On May 18, 2014 Dallas, Texas based AT&T announced it had entered into a definite agreement where AT&T would acquire El Segundo, California based DirecTV in stock-and-cash transaction exceeding $67 billion. This agreement had been approved by both Board of Directors (AT&T, 2014). AT&T has a market value of approximately $185 billion (Informitv Mutliscreen Index, 2014) and is the second largest leader in the US communications by providing wireless, Wi-Fi, high speed internet, voice and cloud-based services (AT&T, 2014). DirecTV is a satellite service company, the second largest pay-television operator in the country and valued at $40 billion (Informitv Mutliscreen Index, 2014). Why was DirecTV Acquired by AT&T DirecTV has over 20 million television subscribers, an increase of over 4 million over eight years (Linderberger, 2014). But DirecTV does not provide broadband connections of their own. DirecTV must partner with other provides to provide there service to their customers (Cox, 2015). This puts DirecTV at a disadvantage against cable and telecomm networks to offer video on demand. This opportunity would allowed DirecTV to have the capability of providing broadband service to its customer and continue to attract new customers. AT&T is ranked number five in the US for...
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...Service Company Analysis - Time Warner Cable Table of Contents Background Page 3 Nature of Services Provided Page 4 Service Culture Page 4 Competition and Strategy Pages 4 and 5 Service Blueprint Pages 5 and 6 Social Media Page 7 Level Capacity Pages 7 and 8 Sustainability Strategy Page 8 SWOT Pages 9 and 10 Recommendations Pages 10 and 11 Bibliography Page 12 Background The beginning of Time Warner Cable (TWC) can be traced back to 1968 when American Television and Communications (ATC) was founded. Later, between 1973 and 1978, Time Inc. acquired 100% of ATC and Warner Communications formed Warner Cable. In 1989, the merger of Time Inc. and Warner Cable was announced, later becoming what we know today as Time Warner Cable. As noted on the company’s website 1, Time Warner Cable Inc. (NYSE: TWC) is among the largest providers of video, high-speed data and voice services in the United States, connecting more than 15 million customers to entertainment, information and each other. They currently operate in 29 states and have over 51,000 employees. Time Warner Cable Business Class offers data, video and voice services to businesses of all sizes, cell tower backhaul services to wireless carriers and managed and outsourced information technology solutions and cloud services. Time Warner Cable Media, the advertising arm of Time Warner Cable, offers national, regional and...
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...shop in the central business district of a large city (Douglas, (2012). Oligopoly markets supply relatively few sellers each supply identical or differentiated products, such as automobiles, aircraft, and steel (Douglas, (2012). Monopoly markets have only one seller of a product or service, which has no direct substitutes, such as your local gas or electricity (Douglas, (2012). My understanding of oligopoly helped me understand an article I read this weekend about AT&T and DirecTV. AT&T Inc. agreed to buy DirecTV for $48.5 billion, or $95 per share, a move that gives telecommunications company a larger base of video subscribers and would increase its ability to compete against Comcast and Time Warner Cable, which agreed to a merger in February. Unlike Comcast and Time Warner Cable, which does not compete in the same territory, AT&T's U-verse,...
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...Sheree Starr Strategic Management-5480 Florida Institute of Technology Dr. Uchenna Nwabueze April 07, 2013 Executive Summary Major Player’s in the U.S Voice-over Internet Protocol market namely Comcast Corporation, Time Warner Cable, Cox Enterprises and Vonage have embraced internet technology and wireless broadband making VOIP one of the most sought out service. Skype’s partnership with AT&T only fuels the boost usage of Voice- over Internet Protocol usage over land line usage. In the wake of these technology advancements, it became clear to entrepreneurs that offered voice traffic and internet service would be one of the next major applications to take full advantage of Voice-over Internet Protocol. There are more advances than innovations in the VOIP world. That’s because some of the most important developments had more to do with commercial and political maneuvers than with technical creativity. One of the most prominent developments was net net neutrality which enables user access to participating networks that advocates no restrictions to materials throughout the modes of communication allowed online ("The mobile World," 2011, para. 4). Further, this industry also have to consider pressures influenced by the government ( FCC) that could dismantle net neutrality by limited user access as well as decrease the power of big wireless communication giants like AT&T. Still, such maneuvers often helped spread the benefits of VOIP much more than technical innovation...
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...Movie Production and Distribution Industry Industry Overview A major influencing factor in the general environment of the movie production industry is the implementation of new technology. The improvement of technology has always been a driving force behind the filmmaking industry. There are various kinds of technology forthcoming. A major one is the development and use of 3D, IMAX and digital film. These new developments have changed the way that movies are made and affect the cost and method of film production. New cameras and recording methods are required in production and this is forcing the directors, actors and other staff to adapt their techniques. Due to the vast array of technologies that can be utilized for movie production there are low barriers of entry for suppliers. The production industry has been able to maintain leverage over these new corporations through their economies of scale and their ability to influence the end user of the product. Another important technological development is the digital streaming and downloading of videos. This new technology is having both positive and negative effects for the filmmakers. The ease of digital proliferation has allowed production companies to widen their brands and make more films and television programs. This has created greater revenue for the industry. Digital streaming has made way for a new kind of company focused on this delivery method. The improvement of digital animation has also increased...
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...awarded to those whose prototypes are selected for eventual manufacture and marketing. Sony continually makes and offers new products, most of which are tested in the Japanese market. Sony has been particularly successful in the United States market; however, it is outsold in Japan and elsewhere by Matsushita, another Japanese electronics giant. Our marketing team is focused on increasing sales for Sony’s electronic products, as well deliver corporate value to their customers and partners. Because the electronic consumer market is such a large industry, there is a great opportunity for Sony to capture a large share of this market, despite the economic down turn in the U.S. MGM The name is taken from the three companies that formed a merger to create MGM Studios in 1924; Metro Picture Corporation (formed in 1915), Goldwyn Picture Corporation (1917), and Louis B. Mayer Pictures (1918), under the control of movie theater magnate Marcus Loew. Louis B. Mayer became the studio boss, and Irving Thalberg, the "Boy Wonder", was head of production. They took on the motto Ars Gratia Artis (Art for Art's Sake) and their trademark lion, "Leo" in 1928 (who had been born in captivity in Dublin Zoo in Ireland). For many years, the MGM Lion was the live-action mascot for MGM, appearing in the opening logo sequence to every movie produced by the studio. A cartoon version of the MGM Lion appears in the Tom and Jerry theatrical animated...
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... Television sets back then used antennas that received wireless airwaves to produce a picture. Consumers could theoretically watch any channel within a broadcast area for free. While this was taking place Glenn Beck, Former CEO of time INC, was working behind the scenes to implement a service that would allow for viewers to plug into a regulated receiver to have reliable access to a broad range of channels and networks. In 1978, TWC acquired 100 percent of the American Television Communications network and Glenn Beck’s idea of regulated television was put into motion. Time INC merged with Warner Cable Company in 1989, and then three years later ATC and Warner converged to formally become the Time Warner Cable, a subsidiary of Time INC. In 1996, Roadrunner high-speed Internet was introduced; next they unveiled their version of digital phone service in 2003. By 2005, the company had brand named the Triple Play, a combination of all three services. Beck’s idea finally had a face and was a fully operational communications company. Time Warner Cable has three corporate offices along the east coast in Connecticut, North Carolina, Virginia and its headquarters are located in New York City. Time Warner Cable is now completely independent of the Time Warner Company, and operates nationally in 29 different states. (4) More recently, the nation’s second largest communications company has undergone a shift in management. After 65 years at the helm, Glenn Beck stepped down from CEO making...
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...MGMT E 2720 Mergers and Acquisitions Supplemental Case Questions 1. The New York Times a. Why is there so much family control in the newspaper business? b. How did the Sulzberger family manage to retain control on the NYT after it went public? c. How does the NYT dual class structure differ from the one used by Dow Jones, prior to its takeover by Rupert Murdoch? d. What explains the behavior of the NYT institutional shareholders – not just Morgan Stanley but also Private Capital Management, T Rowe Price and Vanguard? e. How should Arthur Sulzberger, Jr. respond to Morgan Stanley’s proposal? 2. Valuing AOL Merger a. The Merger was completed on January 11, 2001. Was it a good idea? Did AOL stockholders receive value? Did Time Warner shareholders receive value? b. Do you believe the new company will succeed? If so, how will value be created short and long term? c. What could go wrong with this “mega merger”? What are the most significant threats on the horizon for AOL Time Warner? d. Do you believe the company will achieve its aggressive goals for 2001? e. Any advice for AOL Time Warner execs in summer of 2001? 3. Upjohn Case a. Evaluate the strategic reasoning behind the merger. Will the merger effectively address the strategic alliances faced by Upjohn? b. How do you interpret the stock market reaction to the announced deal? What is the magnitude of performance improvement the...
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...KRYSTLE HANSEN BARRY KOTLOVE ESSAY ASSIGNMENT ESSAY #1 DOMESTIC MARKET Health care reform is a political and economic topic that has been debated for years. Most recently in the United States under the president Barack Obama's current term he passed a law that most of us Americans refer to as Obama Care but is also known as the Affordable Care Act. This law requires every American to have some sort of health care coverage. However, is affordable health care really that affordable? There are some countries that have national health insurance systems where government uses tax revenues to provide a basic health care package. However, in America most citizens are enrolled in private health care Insurance usually provided by their employer. Health care provided by employers does come at a cost. It does drive up the cost of labor because it’s another cost incurred by the firm and sometimes the employee. Several companies I have worked for in the past have shared the cost of insurance; by doing this the firm does not incur all the costs of health care; the firm also avoids being fined for not providing health care. If the firm does not provide health care and has more than 50 employees the firm will incur of fine of $5,000. Thus, employers are essentially forced to either incur the costs of health care or pass part or all the costs onto the employee, therefore, decreasing the overall amount the employee actually makes. Some employers could use health care benefits as an enticement...
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...MGMT E 2720 Mergers and Acquisitions Supplemental Case Questions 1. The New York Times a. Why is there so much family control in the newspaper business? b. How did the Sulzberger family manage to retain control on the NYT after it went public? c. How does the NYT dual class structure differ from the one used by Dow Jones, prior to its takeover by Rupert Murdoch? d. What explains the behavior of the NYT institutional shareholders – not just Morgan Stanley but also Private Capital Management, T Rowe Price and Vanguard? e. How should Arthur Sulzberger, Jr. respond to Morgan Stanley’s proposal? 2. Valuing AOL Merger a. The Merger was completed on January 11, 2001. Was it a good idea? Did AOL stockholders receive value? Did Time Warner shareholders receive value? b. Do you believe the new company will succeed? If so, how will value be created short and long term? c. What could go wrong with this “mega merger”? What are the most significant threats on the horizon for AOL Time Warner? d. Do you believe the company will achieve its aggressive goals for 2001? e. Any advice for AOL Time Warner execs in summer of 2001? 3. Upjohn Case a. Evaluate the strategic reasoning behind the merger. Will the merger effectively address the strategic alliances faced by Upjohn? b. How do you interpret the stock market reaction to the announced deal? What is the magnitude of performance improvement the...
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