iParticipate 8

A Synergy is when two companies combine so the value and performance of the two will become greater as a whole. An example of this would be how when AT&T reached a deal to acquire in time Warner in October of last year. This move put HBO inc, which is subsidiary of Time Warner and AT&T's telecommunication holdings under the same umbrella. A subsidiary is an enterprise is controlled by another through the ownership of greater than 50 percent of its voting stock. Synergies can be beneficial because they allow for both of the companies involved to bring in a larger audiences to their own company which allow for them to make more money.

One subsidiary that is owned by AT&T is DirecTv this could be beneficial to Time Warner being since one of their subsidiaries is Cartoon Network, a cable television network. This could be beneficial since DirecTv is a cable television provider they could offer their customers an exclusive channel package that would give them access to cartoon Networks along with other channels that are owned by them like TBS. This synergy would result in higher quality or more profitable media content for both AT&T. Since both of these companies own twitter accounts they could also use this social media platform to spreed each others content to their audiences. I myself think that synergies are a good thing because it allows for companies to increase in their profits and audience size.