Content is now key to value in media

The $300bn merger between America Online and Time Warner was initially met with euphoria, leading to surging stock prices for both companies. Since then, both stocks have come under pressure, with AOL's stock price dropping 15%. The terms of the deal mean that Time Warner shareholders will own 43% of the combined company, will have 50% of the board seats and will have the chief executive officer position despite having a market value substantially lower than that of AOL at the time of the merger. AOL is therefore putting a substantial discount on the value of its own stock to achieve the ...