Oct. 31, 2007
Palo-Alto, California—Google Inc. (NASDAQ: GOOG and LSE: GGEA) has officially made a hostile takeover bid involving the purchase of Time Warner Inc. (NYSE: TWX), for a sum of 60 billion dollars in debt, cash, and stocks.
This offer came "out of the blue", as Time Warner CEO Richard D. Parsons stated today. As far as Time Warner accepting the offer, Parsons explained that Time Warner will need to do a lot of their own analysis to determine their decision, but that they are interested in negotiation. Parsons expects Time Warners full decision to take a couple of months.
Dr. Eric Schmidt CEO and chairman of Google told us that their offer had overpriced the actual value of Time Warner by 10 billion dollars. The 60 billion dollar offer would consist of 10 billion in cash, 45 billion in stocks, and 5 billion in assumed debt. In response to why Google was so interested in this acquisition Schmidt stated," we have relied on consumer production of our content", citing the popular Youtube as an example, and added "We have no content production of our own, Time Warner does.
Industry analyst Paul Kim told us, “I think Time Warner would be foolish not to accept Googles offer”. Kim stated that Time Warners stock is inflated right now and with the extra 10 billion dollars on top of that value, it would be unwise for Time Warner not to accept. Weather or not the Federal Communications Commission will allow such a takeover, is yet to be seen. Kim also cited the merger between AOL LLC., and Time Warner in 2001 as being unsuccessful and said when rferring to the Google offer, “This could be another match made in heaven that goes to hell, but I don’t think so”.
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4 comments:
You did a great job at using the inverted pyramid. You gave all of the info and spread it out throughout the article without beng repetitive. Good job.
The article itself was well put together. There were a few gramatical errors here and there. I think that the state in the dateline was supposed to have been abbreviated. The info itself was well done though.
Great sized article for such little information.
I like how you created the links to make the article look professionally done.
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