Frederick Moran Merger Quotations

Right now neither stock reflects merger synergies. In fact, Time Warner, although it's getting taken over by AOL, reflects no takeover premium. We think as the deal comes together and they uncover some new business opportunities and synergies, they will drive valuation. I think AOL trades like a media company and in a way it really doesn't trade like an Internet company anymore. So either it's an undervalued media company relative to its growth prospects or it's a very cheap Internet company.

It also comes on the heals of AOL-Time Warner and the Terra Networks merger with Lycos, and shows that the Internet and media landscape is getting increasingly competitive, requiring more consolidation.