Econimics-Merger between AOL and Netscape

This paper focuses on the proposed merger between America Online Inc. and Netscape Communications Corporation. It presents an overview of the two companies prior to the merger, identifies the issue/issues at hand, presents an in-depth analysis, and suggests alternatives using course concepts. Overview America Online Inc., based in Dulles, Virginia, is the world's leader in branded interactive services and content. The company provides two worldwide Internet online services, America Online and CompuServe, with approximately 16 …

…in the courts. Some long-term relationships do prosper on the basis of trust and of fear of losing future business. The many alternatives available, present both positive and negative consequences for AOL and Netscape. It is recommended that AOL vertically integrate with Netscape to take advantage of their similar backgrounds and to combine their resources to maintain and develop a new era of products which allow to remain competitive, in this unstable, complex global environment.