SummaryThe purpose of this case study was to examine the impact of the Fox News acquisition on Time Warner, Inc. The multifaceted Time Warner merged with AOL in 2001, creating a loss of value for both companies. Time Warner has been looking for ways to boost overall revenue through divesting parts of its company or acquiring new companies to bolster earnings. This article explores the impact Time Warner's acquisition of Fox News created on its news network. The impact of complementarities, the creation of antitrust and the real synergy between CNN and Fox News. Introduction In January 2000, Time Warner, Inc. (TW) announced its plans to merge with America Online (AOL) and subsequently completed in 2001, it had become the largest merger in U.S. 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 reported as $165 billion. While many saw an opportunity to create synergy between the two media giants, the company as a whole had 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, through the use of hypothetical memos issued within Time Warner. Memo 4 discusses the possible acquisition of Fox News to increase revenues, strengthen subscriptions and expand its international market. The purpose of this document is to address the specific issues Time Warner is facing with its acquisition of Fox News and to provide strategic moves that will make the most of Time Warner's current situation. MethodologyQualitative and case study research were at the heart of the paper. ....sing revenues to support profits. By focusing on retaining its viewers, retaining viewers, and increasing advertising revenue, TW would be able to continue to successfully compete against Fox News without the need to acquire the actual network. References Baye, Michael R. (2005). Managerial Economics and Business Strategy, Fifth Edition. Boston, Massachusetts: McGraw-Hill.CNN. (2006, December 13). In Wikipedia, the free encyclopedia. Retrieved December 12, 2006, from http://en.wikipedia.org/w/index.php?title=CNN&oldid=94093631Fox News Channel. (2006, December 14). In Wikipedia, the free encyclopedia. December 12, 2006, from 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