Operational Concerns

Operational Concerns - built the world's pre-eminent media...

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Operational Concerns When a firm is considering merging with another firm it is important that the two firms are aware of any operational concerns that might arise in the merging. Operational problems can arise from differences managerial issues for example. Merging firms should be aware of these sorts of problems before they move forward with a merger action to avoid possible disastrous consequences. Issues of how a newly merged firm will be managed can be a contentious point when pursuing a merger. In the case of the AOL Time Warner merger this point was not lost on the firm’s management. “Mr. Case added: "We have tremendous respect for Jerry Levin and Time Warner management, who have
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Unformatted text preview: built the world's pre-eminent media company and have fostered an entrepreneurial culture that will mesh well with our own.” () Though this may not have ended up being the case in action, in the initial analysis the firm’s management acknowledged the importance of this factor to the success of the new firm. Without careful consideration of operational factors a merger can be doomed before it begins. 1. ^ a b " America Online and Time Warner Will Merge to Create World's First Internet-Age Media and Communications Company ". Time Warner corporate homepage ( 2000-01-10 ). Retrieved on 2007-05-06 ....
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