Google, Inc. Makes Acquisition Offer to Time Warner, Inc.

Extra Practice News Story #8: Business
10:12 a.m. November 1, 2007
Google, Inc. Makes Acquisition Offer to Time Warner, Inc.


PALO ALTO, CA— Google, Inc. (GOOG) has made a hostile take over bid to Time Warner, Inc. (TWX) in the amount of $60 billion dollars. This revolutionary act of convergence would redefine the media world and create the largest media company in history.
Chief executive officer and chairman of Google Inc., Dr. Eric Schmidt has stated that the reason for the $60 billion offer is that the ability for both content distribution and production would be well worth the money for Google. “We believe now is the time for Google to buy and we have over priced the value in their stock” making an extremely attractive offer of $10 billion in cash, $5 billion in assumed debt and $45 billion in stocks. “Google has the ability to do what AOL and Time Warner set out to do in 2000”
Richard D. Parsons, CEO of Time Warner, Inc. has said “Mergers have been previously discussed with other companies such as Yahoo! Inc. (YHOO) and Microsoft Corporation (MSFT), but never a buy out.” “We are considering and interested, but it will take some time to make a decision”
Microsoft Corp. CEO Steve Ballmer and Yahoo, Inc. CEO Jerry Yang have declined to comment.
Industry analyst Paul Kim says the acquisition “seems to make sense”. “Time Warner would be foolish not to accept” as stocks are currently inflated. “There are a few hurdles that would need to be overcome; the Federal Communications Commission must allow it, and it could be looked at as a monopoly, but it would be well worth it…$60 billion dollars is a very generous offer.”