...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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...Shana Pritchett May 27, 2014 Everest University Workplace Continuity & Contingency Planning-1 Corporate Blunder: The AOL/Time Warner Merger CORPORATE BLUNDER: THE AOL/TIME WARNER MERGER In 2000, AOL and Time Warner made the public announcement in what has been the biggest merger in U.S. business history, and it received so much press and hype it seemed that the predominance of internet over previous media was finalized. A lot of people have believed that this particular union was a symbol of an exciting future of collaboration between the worldwide internet and the television. Many of those individuals that was observing this merger foreseen that this would be a magnificent collaboration. And with Time Warner's valuable collection of movies, music as well as printed media that is being presented to the AOL's clientele by the means of the internet. The result of the deal is reminisced less for its dimension and much more for being the poorest amalgamation in history. Ultimately these two corporations split in 2009. In the end, AOL and Time Warner’s worth as a unified company withered down from $300 billion when they initially merged all the way down to what they declared to just about $40 billion when they parted ways. What they envisioned wasn’t a bad decision because we're seeing movies, TV, and music scattered all online by way of Apple, Google, Amazon and others. However, in the collaboration, there were many culture clashes, leadership blunders and effectively...
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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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...1 Time Warner Ctr. | New York, New York | 10019-016 | USA 1 Time Warner Ctr. | New York, New York | 10019-016 | USA TIME WARNER INC. The beginnings of Time Warner Inc. date back to 1922, when Henry Luce and Briton Haden founded Time Inc. Also during that time, brothers Harry, Abe, Jack and Sam Werner established Warner Bros. Entertainment. Today, Time and Warner Bros., along with Home Box Office, Inc. and Turner Broadcasting System, Inc. combine to make Time Warner one of today’s a global leader in media and entertainment with businesses in television networks, film and TV entertainment and publishing. Time Warner previously owned AOL, Time Warner Cable and Warner Music Group, but these have all been spun off into independent companies. In March 2013, it was announced that Time Inc. would be spun off as well, completing Time Warner's evolution into a pure-play global entertainment company. The company's cable news channel, CNN, later clarified that the Time Inc. spin-off would happen at the end of 2013, though this has since been delayed to early 2014. It's now being reported that the planned spin-off of Time Inc from Time Warner will take place half-way through 2014 with the company's planned IPO being to happen in late 2014. Time Warner’s corporate strategy revolves around strategic mergers, acquisitions and corporate actions that result in creating cash considerations for the company. Thus, Time Warner is in a strong financial position today as they recorded...
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...The $84.5 billion AT&T-Time Warner merger should be denied by the federal government for multiple reasons. Based on what what I have learned about white collar crime and the media deal between the two telecommunication companies, this merger is a deal that could put the company at risk of committing white collar crimes. Both AT&T and Time Warner are already big corporations in the media industry, and their union will make even fewer titans. It will lead to a huge amount of power for AT&T and will be in violation of anti-trust laws set forth by the government itself. This deal is not in the public interest and federal regulators should scrutinize this deal and consider the effect it will have on smaller telecommunication businesses, consumers, and employees. Time Warner owns popular media companies such as CNN, HBO, and Warner Bros. Studios. AT&T is a major provider of telephone, internet and cable services across the nation. Both of these companies are incredibly large and prosperous on their own. Together, they would make the few number of companies that dominate the telecommunications market even smaller. This could have a negative effect on the free-market economy if they use this power to monopolize the market. This is exactly what Anti-trust laws were designed to prevent. The Clayton Act, an...
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...Comcast and Time Warner Merger One of the largest and most controversial proposed mergers in recent history is the acquisition of Time Warner Cable by Comcast. This proposed acquisition was structured through a friendly agreement between Time Warner Cable and Comcast. Comcast, the initiator of this merger, is set to acquire Time Warner Cable’s eleven million managed service subscribers, Time Warner’s other equity holdings in areas such as Sterling Enterprises and DukeNet Communications, along with it’s local programming and news stations. The proposed method of financing for this acquisition is a stock-for-stock transaction. Through this Comcast will acquire all of Time Warner’s 284.9 million outstanding shares for an equity stake in Comcast amounting to 45.2 billion dollars at the current market value (Comcast 1). In order to address competitive market failure concerns associated with the proposed acquisition, Comcast structured a mutual agreement with competing firm Charter Communications under which Comcast will divest 1.4 million existing Time Warner Cable customers to Charter for cash, along with a trade of 1.6 million customers between Charter and Comcast in order to promote and greater enhance the geographic market presence of both firms (Kang 2). Through this additional action Comcast and Charter seek to improve operational efficiencies, grow customer satisfaction, and better deploy technology in their respective markets (Comcast 1). As stated earlier this merger...
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...Анализ маркетинговых особенностей развития современной медиаиндустрии на примере анализа холдинга Time Warner Inc. Введение Современная медиаиндустрия, которую компания PricewaterhouseCoopers (PwC) довольно точно охарактеризовала как «увлекательную, но не простую для осмысления» (exciting but challenging), предоставляет уникальные возможности для исследования бизнес-моделей фирм, их эволюции и трансформации в условиях революционных технологических перемен. Производя, по разным оценкам, от 2 до 4% мирового валового продукта, компании этой отрасли имеют колоссальное влияние на всю мировую экономику, выступая в качестве не только экономических единиц, но и важнейшего политического и культурного института. Индустрия СМИ и телекоммуникаций является частью индустрии сервиса. По показателю сравнительного объема в середине 2000-х годов она стала важнейшей частью национальных экономик. Например, в США объем промышленного производства достигал 265 млрд. долларов, объем производства обрабатывающих отраслей составлял 1393, а объем индустрии сервиса 5966 млрд. В разных странах это соотношение выражается так: ВВП - по секторам экономики: Германия:Cельское хозяйство: 0,8% Промышленность: 28,6% Услуги: 70,6% Япония: Сельское хозяйство: 1,2% Промышленность: 27,3%Услуги:71,6% Великобритания: Сельское хозяйство: 0,7% Промышленность: 21,4% Услуги: 77,8% [pic] [pic] Потребители приобретают новые привычки в условиях “новых реалий” цифровой среды. ...
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...suggests further analysis is required after the production of a PESTEL analysis. The PESTEL framework was chosen for a few reasons. First, the analysis creates a general map of the external environments of each organization. Second, a fairly significant portion of mergers and acquisitions occur because of external forces. The PESTEL analysis determines the external forces at play for each organization. Third, the PASTEL analysis external forces only qualify if they are defined as a change in the environment. In regards to the America Online and Time Warner merger, a PESTEL diagnostic analysis can be applied to both organizations. First is an overview of the political external environment. Due to the nature of the merger in discussion, the political environment will also include a review of the legal environment. The biggest external factor affecting the potential merger between America Online (AOL) and Time Warner were the anti-trust laws in place to regulate corporate mergers and acquisitions. Anti-trust regulations are in place for many reasons, one of which includes the approval of...
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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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...Fraud Examination - Research Project Select a publicly traded company that has experienced Fraud since 2002. You will need to receive approval from me for the company in which you select PRIOR to beginning your research. You MUST submit the name of the company you have chosen by the end of this unit. Your final project is due no later than the end of Unit 9. Company selected: AOL Time Warner. When scandal went public: July 2002. As the ad market faltered and AOL's purchase of Time Warner loomed, AOL inflated sales by booking barter deals and ads it sold on behalf of others as revenue to keep its growth rate up and seal the deal. AOL also boosted sales via "round-trip" deals with advertisers and suppliers. Shredding documents related to audit. AOL said it may have overstated revenue by $49 million. Course Paper - Instructions The paper must be a minimum of 10 complete pages in length (double spaced), not including your title page and reference page, double spaced using Times New Roman Font, Font size 12 and include the following: 1. Background on the company 2. Overview of the Questionable Accounting Practices and the Financial Statement Highlights. 3. One of the main purposes of the Sarbanes Oxley Act of 2002 was to make the leadership teams of the different organizations more responsible for their financial data that is released. With this in mind, what involvement did the leadership have in this fraud, if any? If the leadership team was not involved...
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...Case Analysis 11 AOL Time Warner, Inc.: A Bad Idea from the Start? * Time Warner is the result of a merger of two companies (Time Inc. & Warner Brothers). Both companies * * grew to become industry leaders in media and entertainment. Time Inc. launched various magazines and * * acquired a publishing house. Warner studios released the first talking movie and created Warner Bros. * * Warner studio became a cable industry. Time Warner further expanded its market potential in its industry * * and merged with AOL, an industry leader in online information and other broadband services. AOL purchase * * of brands such as CompuServe and MapQuest along with other brands, was its acquisition strategy. After the * * merger in Jan. 2001 the company became known as AOL Time Warner. AOL offered stock value of $110 for * each Time Warner share that was selling at $64.75 in the market. AOL Time Warner marketing concept was to * combine new and old media to strengthen total position in the market. AOL Time Warner revenues increased * by 78.7% in 2002. Operating income and net income decrease. Net loss was $98.69 billion compared to a loss * of $4.93 in 2001. And a profit of $1.12 in 2000. By 2003 the potential of the merger failed to be seen due to * economic, financial times, internal management and cultural clashes. * * I. Internal Scanning * A. Strengths 1. AOLTW held the...
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...usually starts with a vision statement that gives detail to potential opportunities of the organization. Managers must have the knowledge to understand the concept of choosing a strategy that can be beneficial to the business operation. Using the information provided by ABC, companies will be able to cut costs, review pricing policies and determine more profitable mix. This paper will evaluate how AOL- time warner can implement an ABC system, how the system can help maintain a competitive advantage, the impact the system has on online business sale. Company history Time Warner, as we know it today, is the result of many mergers and acquisitions. The company’s history can be traced back to 1922, when Warner Brothers was established. The company was later renamed to Warner Communications. Quantum Computer Services launched what would become America Online services 1985. In 1991 Quantum Computer Services changed its name to America Online, and went public in 1992. Meanwhile, in 1990, Time Incorporation merged with Warner Communications to form Time Warner. Then in 1996 Time Warner acquired Ted Turner’s Turner Broadcasting System. America Online acquired CompuServe in 1998...
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...Accounting Scandals: Responsible Stewardship and Integrity AOL Time Warner 1. Summary of the events that led to the accounting scandal. AOL was the major face in the Internet scene for four years, between1994 to 1999, by using aggressive advertising contracts instead of charging subscription fees to their users. When internet advertising became more and more popular, AOL’s stock rose by an extremely large amount. Due to this tremendous response from investors, enhancing revenues in order to keep the stock prices favorable for AOL TW’s stockholders became the core objective of the AOL management and its employees (Cantoria). In 2000, a new company called AOL Time Warner was created when AOL purchased Time Warner for $164 billion. The deal announced on January 10, 2000 and officially filed on February 11, 2000, this merger in which each original company had a creative opportunity to merge into a newly created entity. Immediately before and after AOL’s merger with Time Warner, top executives at the internet company used tricks, contrivances and false transactions to inflate the value of AOL stock while liquidating their shares in a selling frenzy to enrich themselves to the tune of $936 million. 2. The financial accounting that was performed in the scandal. In 2001 and 2002, the company inflated its online advertising revenue by $400 million in connection with transactions with Bertelsmann. Bertelsmann paid $400 million as consideration for amendments to the multi-billion...
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...Variable interest entities The securities exchange commission of the United States is geared at having companies perform the best accounting practices. The securities exchange commission formed the financial accounting standards board to oversee the formulation of accounting principle. Many companies in United States are guided by the generally accepted accounting principles (GAAP) as they write their financial statements. The financial accounting standards board contains a clause relating to variable interest entity. Companies use the Variable interest entity to accomplish certain goals. The variable controlling entity is defined using various criterias. The financial accounting standards board defines a variable controlling interest as an entity in which the controlling interest of a company is not based on voting rights. An investor can hold controlling interest in a company based on a certain agreement. VIE are viewed as partnership or joint venture between companies. Other companies use view VIE’s as trust agreements. However, companies create VIE to engage in limited business activities. The activities could include the purchase of new assets. In this case, many companies use the assets as collaterals. Therefore, the assets are financed at lower interest rates. VIE is based on a contractual agreements. The terms and conditions of the contract determine which firm or investor gains control of the VIE. In most instances, the sponsoring firm is deemed as the beneficiary...
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...1. Generic strategy & main facts Time Warner, Inc. (TW) is a global leader in the diversified Media & Entertainment industry, where new segments are constantly up and coming. While consumers can already watch shows for free online, they are maintaining selling premium products not for free and not for the lowest price, and therefor follow a differentiation strategy. Through the strength of their valuable brands, they build their competitive advantage in making, acquiring and distributing great content, and this results in a 17% operating income growth as well as in a ROI of 4.96 and a profitability margin of 10.08% by January 20th, 2012. In 2011 they were able to monetize value especially through investing in sports (NBA) and their collaboration with CBS. 2. Current strategies Strategy 1: Acquisition: TW acquired subscription video-on-demand services (SVOD) such as Hulu and Netflix (a deal worth hundreds of millions of dollars), and Flixster – a social network for movie fans, which all monetize and maximize the value of TWs’ content. Strategy 2: Innovation: TW introduced TV Everywhere so called HBO GO, a streaming service to mobile devices that reaches now 80% of the subscriber base. Strategy 3: Internationalization: TW continues establishing new channels in India. It has been the leader for children’s TV channels for many years. Strategy 4: Refocusing: the spin off of AOL and TW allowed the management to focus resources on stronger segments within the own company...
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