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Example of Innovation or Reorganization in an Organization or Firm: Effects of the AOL Time Warner Merge

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This is a 6 page paper discussing the effects of the reorganization of the AOL Time Warner merge. The structural changes which occurred during the merge of AOL and Time Warner in 2000 forever changed the prospects, profits and organization of each company. Since the merge, the newly formed AOL Time Warner has lost the benefits of its major innovators in addition to several billions dollars in profits for the shareholders and also has led to the reduction of its work force by the thousands. The merger resulted in many reorganizations within the company, none of which have managed to regain the former success of AOL and Time Warner before they merged. Bibliography lists 3 sources.

Page Count:

6 pages (~225 words per page)

File: D0_TJindex1.rtf

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profits and organization of each company. Since the merge, the newly formed AOL Time Warner has lost the benefits of its major innovators in addition to several billions dollars in profits for the shareholders and also has led to the reduction of its work force by the thousands. The merger resulted in many reorganizations within the company, none of which have managed to regain the former success of AOL and Time Warner before they merged. The gradual merging and restructuring of the Timer Warner Inc. has changed drastically since combining its sources in 1996. Time Warner had at its head Ted Turner who with his innovations in the industry introduced the international cable market to CNN, the Goodwill Games and the Cartoon Network. On January 10, 2000 however, Time Warner announced its upcoming merge with America Online (AOL) closing a $160 billion dollar deal. After the reorganization and the bringing of AOL into its fold, the new organization did not have Ted Turner at its head and instead he became the vice-chairman and senior advisor and was no longer in charge of CNN, TNT, TBS, the Cartoon Network or any of the other cable channels affiliated with Time Warner (Grover, 2000). From the point of when Ted Turner was taken out of the creative fold of AOL Time Warner, the industry critics by the whole felt that this reorganization would not only be to the detriment of the company itself but also to the industry as a whole because it would lose one of the truly creative and innovative characters in the business (Grover, 2000). Turner was not only innovative in the programs he introduced into the cable industry but was also reported as being hands-on in regards to monitoring and upgrading any programming which was seen as lagging or ...

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