Wednesday, August 6, 2014

Time Warner: Take The Money And Run... Soon


Summary

  • Twenty-First Century Fox's pursuit of Time Warner probably isn't over.
  • Valuations in the group are becoming stretched.
  • Time Warner solidly beat Q2 '14 earnings estimates, increasing the value of the company to a bidder.
A few weeks ago, the revelation that Twenty-First Century Fox (NASDAQ: FOXA) (NASDAQ:FOX) offered to purchase Time Warner (NYSE: TWX) sent the latter's stock surging roughly 17% for the day. The stock sat around the offer price of $85 for a few weeks providing the opportunity to sell it at a solid price before the 12% drop today. The offer for the content giant is another step in the cable wars though it may not materialize into a merger now. The initial moves to consolidate the cable networks in the case of Comcast (NASDAQ:CMCSA) (NASDAQ:CMCSK) buying Time Warner Cable (NYSE: TWC) is leading the content providers to look into ways of bulking up.

Read the full article at Seeking Alpha.


Disclosure: Long TWX. Please review the disclaimer page for more details. 



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