By spinning off AOL on December 9th, Time Warner will end what is regarded as one of the most disastrous corporate mergers in history. School of Management Professor N. Venkat Venkatraman says it should be a lesson for those who seek “synergy” but don’t consider how the combined entity can actually create value for customers and shareholders.
“This corporate combination — conceived at the height of the dotcom boom — valued the company at $163 billion. Now the same assets are valued at $3.4 billion. What more data do managers need to know the downside risks of corporate combinations?”
Contact N. Venkat Venkatraman, 617-353-7117, email@example.com