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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Uncle Frank who wrote (51126)	4/25/2002 12:39:17 PM
From: paul_philp	Read Replies (1) \| Respond to of 54805

Otoh both Compaq and HP have been doing poorly in the same business, and the rationale is that the merger will be accretive due to economy of scale. History doesn't seem to support that contention. HP + Compaq = The Next Unisys. Paul@AnOldieButAGoodie.com

To: Uncle Frank who wrote (51126)	4/25/2002 2:14:15 PM
From: techreports	Respond to of 54805

AOL and Time Warner are dominant players in different phases of the same industry, and the rationale for their merger was that they complement each other. AOL can expand the reach of TW's entertainment properties by distributing them through their internet channel, and TW's content can help AOL grow that very channel. In this case, it is possible to conclude that 1+1 might be >2. Ya, that's what the rationale was. What really happened was that management at Aol knew what was up. They wanted TimeWarners properties so they tell WallStreet this nice little fuzzy story how the two companies will create greater shareholder value. Did you really think Aol+TimeWarner was going to create another 2-3 billion in revenue that wasn't there before? Did you think by promoting Time Magazine on Aol or TimeWarner movies that these two companies could all of a sudden create another 2 billion in revenue for the company? Maybe they did, but I don't follow the company anymore. What's more interesting is that Aol's subscriber growth has slowed. I thought TimeWarner was going to allow them to promote the Aol brand? Although the slowing economy may be part of the problem for Aol's slowing growth. Or maybe more people are moving to broadband.