Google makes hostile takeover bid of Time Warner
Posted: March 21, 2008 8:31 PM
SAN JOSE, Calif.- Google made a bid to take over Time Warner, Inc. in a hostile offer Thursday, wanting to buy the company despite objection from Time Warner's board of directors.
Despite the resistance of the heads of Time Warner, Google CEO Dr. Eric Schmidt feels the time is right for the takeover given the landscape and conditions of the media industry at the current time.
"Google strikes while the iron's hot, and the iron is hot right now in the media industry. This is the correct move at the correct time for Google," he said.
In Dr. Schmidt's mind, that is especially the right move considering that Microsoft CEOs also had their eye on the takeover of Time Warner Inc., an indication that Google aims to become a stronger media conglomerate before other large companies have the chance to capitalize the way that Schmidt feels his company is doing with this takeover.
Analysts, meanwhile, are hopeful that a hostile takeover by Google would enable the media industry to improve even more than it currently is, given their success as a search engine that has increasingly been pushing search engine rival Yahoo off the map, the primary reason for their diminishing presence in the media market.
Yahoo also wanted to get bought by Time Warner, but with their primary competitor aiming to make the purchase, Yahoo would be upset to be owned by their rival.
This move by Google Inc. would make Yahoo even less relevant in the business landscape.