SummaryThe purpose of this case study was to examine the impact of the Fox News acquisition on Time Warner, Inc. The multifaceted Time Corporation Warner merged with AOL in 2001, creating a loss in value for both companies. Time Warner has looked for ways to increase its overall revenue by divesting parts of its company or acquiring new companies to increase profits. This article explores the impact created by Time Warner's acquisition of Fox News on its news network offerings. The impact of complementarities, antitrust creations, and the reality of ongoing synergy between CNN and Fox News.IntroductionIn January 2000, Time Warner, Inc. (TW) announced plans to merge with America Online ( AOL) and after Completed in 2001, it had become the largest merger in American corporate history. AOL had a pre-merger value of $163 billion and Time Warner had a pre-announcement value of $100 billion. In 2001, the value of the combined company was estimated at $165 billion. While many saw an opportunity to create synergy between the two media giants, the company as a whole saw little success as a combined entity and has since faced several challenges. Michael R. Baye addresses several discussion questions regarding the merger in his textbook Managerial Economics and Business Strategy, using hypothetical memos published within Time Warner. Memo 4 discusses the possible acquisition of Fox News to increase revenue, strengthen subscriptions and expand its international market. The purpose of this article is to address the specific issues Time Warner faces in acquiring Fox News and to propose strategic moves that best capitalize on Time Warner's current situation.MethodologyQualitative research and case studies were in the middle of the article.... ....singing income to strengthen profits. By focusing on retaining its viewers, retaining them, and increasing its advertising revenue, TW would be able to continue to successfully compete with Fox News without needing to acquire the network itself. References Baye, Michael R. ( 2005). Managerial Economics and Business Strategy, Fifth Edition. Boston, MA: McGraw-Hill.CNN. (December 13, 2006). In Wikipedia, the free encyclopedia. Retrieved December 12, 2006, from http://en.wikipedia.org/w/index.php?title=CNN&oldid=94093631Fox News Channel. (December 14, 2006). In Wikipedia, the free encyclopedia. December 12, 2006, at http://en.wikipedia.org/w/index.php?title=Fox_News_Channel&oldid=94231890Synergy. (2006, December 8). In Wikipedia, the free encyclopedia. Retrieved December 12, 2006 from http://en.wikipedia.org/w/index.php?title=Synergy&oldid=93013797