As the world's largest internet service, AOL brings more than 30m subscribers to the deal, as well as a well-established brand on the web. But more importantly, it brings tried and tested strategies of using the internet to provide information and entertainment. There has been a tendency for the leading players to seek strategic alliances. The internet is no longer something broadcasters or newspaper publishers can ignore. They are realising this and are looking for ways to break into the internet.
Many internet services have that presence on the web, as well as internet skills and experience.
What they lack is the money and content to build on what they have achieved. Some players have already joined forces. After the merger between Time Warner and AOL, others will be looking around to stake their claim in cyberspace. The marriage of AOL and Time Warner is likely to lead to considerable consolidation with more mergers, acquisitions or partnerships as traditional media companies scramble to jump on the internet bandwagon. However, despite all the excitement, no other firms have made a move yet.