merger of Time with warner is economically very attractive this is contributed by high value enhancement opportunities. This value enhancement opportunity reveals clearly the existence of a merger between Time with Warner. Motives present included:

How attractive is the merger of Time with Warner? What are the value enhancement opportunities?

Existence of horizontal merger. This existence leads to economies of scale.it represents combination of two firms in the same line of business (Allen, 2008, p.68).Time and warner are in the same line of business hence this can be considered as horizontal. The prime advantage of this is that there is sharing of central services such as office management and accounting, financial control, executive development and top level management consolidating operations hence elimination of redundant costs.

Vertical merger .this involves companies at different stages of production. Vertical mergers seek economies of scale in vertical integration this is gained by spreading fixed...
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