Management 2:AT&T is involved in an agreement to buy Time Warner, a deal that would set a milestone in the converging media and telecommunications sectors. An AT&T-Time Warner merger would be the most ambitious marriage of content and distribution since Comcast’s 2011 purchase of NBC/Universal.
Assignment 2: a) In a nutshell, where does the synergy lie between AT&T and Time Warner? Why does 2+2=5 in this case? b) how would you precisely categorize the strategic rationale for this merger? For example, does it create greater efficiency? Does it create greater market power? Does the merger simply extract value from customers? c) Does the merger represent more than a case of vertical integration or more an instance of business diversification and why?
Please be concise, well organized and informative in terms of your analysis and rationale and do not exceed 1 single spaced typed page. References can be additional.
