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[Broadband]| Wednesday 4th October 2000 |
The two companies described the merger as creating "the world's first fully integrated media and communications company for the internet century".
The deal brings together Time Warner's huge range of content providers in print (Time, People magazines), film (Warner Brothers, New Line Cinema), TV (CNN, HBO), music (Madonna and Cher included on the roster of artists) and websites (entertaindom, CNN.com), with AOL's massive investment in internet resources (including CompuServe, Netscape and ICQ).
More significantly it merges the world's largest base of internet users (20 million AOL customers and 2.2 million on CompuServe) with Time Warner's massive US network of cable companies. AOL has recently announced it is developing access technologies based on TV devices, and the link up with Time Warner will mean it can expand the customer base into homes that would never consider buying a PC.
As they operate in different business sectors, the two companies should avoid any monopoly objections. But the size of the new conglomerate may spur other media and internet giants to form similar alliances.
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