$500 million in cost savings could be achieved by cross promotion through shared assets, including marketing, subscri

[answerhappygod]

$500 million in cost savings could be achieved by cross
promotion through shared assets, including
marketing, subscription renewals, telecom and network costs, and
online business development. The merged company would offer AOL
enormous cross-selling opportunities through Time
Warner's cable (14 MM subscribers), television (35 MM HBO
subscribers and 1 billion CNN viewers) and
publication assets (120 MM readers annually). Mark any of the
following that are true.
the above implies that AOL and Time Warner can advertise using
each others' media.
If they use each other for advertising they wont be losing other
advertising revenue.
This is a transfer pricing problem. Each assumes to be paying
cost. The other will then get less revenue.
For this to succeed a lot of advertising will need to be very
successful
Transformational The final level of
synergy offered by the AOL Time Warner management team consisted of
new business that they could not yet envision, but they sensed the
synergies were out there. Thus, the team had no concrete examples
for the simple reason that no one knew what these types of
synergies would be. Which of the following statements is true
(select one)?
This is a good example of economies of scope
Time Warner has done a good job integrating its business units
in the past. Blending with AOL should be easy
There may be some opportunities in the
future. Shareholders deserve something more speicific for their
money.
There is little risk to this merger