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Time ticking for Time Warner game plan

Wednesday, August 06, 2014 - 02:08

Time Warner's better-than-expected earnings were overshadowed by a sell-off in the stock tied to the withdrawal of Rupert Murdoch's Twenty-First Century's Fox's $80 billion dollar bid. Bobbi Rebell reports.

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The clock is now ticking for Time Warner's Jeff Bewkes to prove to investors, he was right to give Rupert Murdoch's Twenty-First Century Fox- and his $80 billion takeover offer, the brush off. Earnings came in strong but shareholders sold the stock, seemingly laser focused on the unexpected premature breakup of what could have been a lucrative and game changing marriage. Reuters M&A Correspondent Liana Baker: SOUNDBITE: LIANA BANKER, REUTERS M&A CORRESPONDENT (ENGLISH) SAYING: "I think Time Warner is in a tough spot. They tried to communicate to investors that they are going to create their own value. They are going to do a big share buyback, and you know ratings are going to improve across their networks. But I think it's going to be a tough sell. Some analysts are calling for Time Warner to create more value, maybe do a partial spin of HBO or something more drastic, because essentially they had a deal at hand. Now it's not there." REPORTER BRIDGE: BOBBI REBELL, REUTERS CORRESPONDENT (ENGLISH) SAYING: "HBO has been hitting on all cylinders with hits like Game of Thrones- the last season was the most watched season of an original series in HBO history." And now that Fox made the first move- there could be new suitors wanting to take Time Warner off the market. S&P Capital IQ's Tuna Amobi: SOUNDBITE: TUNA AMOBI, SENIOR EQUITY ANALYST, S&P CAPITAL IQ (ENGLISH) SAYING: "Google has been mentioned. Amazon, which just struck a potentially groundbreaking deal with HBO, could also be a potential buyer given Amazon's emphasis on you know content, and even in a farfetched scenario Apple as well. So, you look at all kinds of possibilities. And of course even in the media landscape you know, some of the other major content companies. I think it's not inconceivable that the large media conglomerates, whether it's you know, Discovery, or Scripps, or any of the other niche targeted Networks, AMC networks. All of these could be hypothetical candidates." Amobi also thinks Murdoch could be back…biding his time to get a second chance down the road- maybe even at a more attractive price.

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Time ticking for Time Warner game plan

Wednesday, August 06, 2014 - 02:08