Practice News Story #7: Business

Google Inc. Offers Takeover Bid to Time Warner Inc.
Posted: 10:15 a.m. PT, March 8, 2007

Palo Alto, Calif.- Google Inc. (GOOG) has put in a takeover bid to Time Warner Inc. (TWX). The purchase price has been reported at $50 billion in cash and stocks. Time Warner has been given 30 days to review the offer and negotiate this deal with Google.
As far as any further details they will be negotiated.

CEO of Time Warner, Richard D. Parsons, said that they plan to take the full 30 days to determine whether the value is worth it or not. He said that Time Warner has never been given a written offer for the entire company. He plans to analyze how Time Warner would benefit from this move and to make the best decision to take care of their employees.

CEO of Google, Dr. Eric Schmidt, commented that they always try to overestimate the value when they offer a bid. They round up with hopes of being successful with the offer. He said, “We try to have good relations with the companies we would like to merge with.” He feels that this is a perfect fit at this time bringing distribution together. He hopes to give AOL a second life.

Paul Kim, an industry analyst said that he feels that this is a great move. He said “This will be a major catalyst with other companies doing the same thing.”