Managing Change- Strategies for mergers and acquisition AOL and TIME Essay

Managing Change- Strategies for mergers and acquisition AOL and TIME WARNER - Essay ExampleIn both the cases of mergers and acquisitions, two fraction entities decide to come together a change is certain to happen in the new amalgamated set-up. The change is expected in the company policies, commission hierarchy, and customer relations among other major things. And if the merger is that of the largest merger till date, we can understand the proximity of the change. Merger of prison term Warner with America Online proves the fact.Beginning its voyage with the name of Quantum Computer Services, America Online (popularly known as AOL) has been one of the most successful brands in the world of internet. Proving the fears of many experts wrong, AOL was successful even after the free people internet service providers entered the market. AOL also successfully survived the dotcom bust when many of its competitors had to shut their business.For a long time sequence Warner has been a part of various mergers and acquisitions. The company, Time Warner, was formed in 1990 when Time, Inc and Warner Communication decided to merge together. It has a wide array of business initiatives ranging from producing films, publishing books, broadcasting, etc. Some of its leading brands are Time, CNN, Warner Brothers.It was too soon January of the year 2000 when the biggest corporate merger was announced as an all stock transaction. But there were certain issues to be settled before the deal adage days light. After about a year, on 11th January 2001, with the approval of FCC, the deal was signed of making AOL Time Warner, the largest media and entertainment company in the world.Though, both the companies claimed it was a merger of equals, but actually AOL shareholders owned 55% stake of the new company and the remaining 45% stake of AOL Time Warner belonged to the shareholders of Time Warner (McCullagh D., December 2000).The new company initially traded at the New York Stoke Exchan ge with