Ripple effects from the Time Warner-21st Century Fox revelation

Though Time Warner (TWX +16.7%) CEO Jeffrey Bewkes posted a video on the company's blog in which he resoundingly rejects the offer from 21st Century Fox (FOXA -3.5%), there's a line of though amongst media analysts that the response is part of choreographed song-and-dance. notes former Murdoch confidante Gary Ginsberg is now a top lieutenant for Bewkes and could be the key man in brokering a deal.

Ripple#1: A combination of the two companies could light a fire under M&A activity in the media sector between content producers (DISCA, LGF, AMCX, SNI, VIA, VIAB) and tech heavyweights such as Google, Apple, or Sony which haven't pulled the trigger yet on a mega-content deal.

Ripple #2: Two companies in the cross-hairs of a TWX-FOXA combination are Disney (DIS -1%) which could see ESPN lose a little bit of leverage with TNT and TBS linked with Fox Sports and Netflix (NFLX -1%) where a challenge from HBO in more global markets would be likely.

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Comments (2)
  • alext1379
    , contributor
    Comments (811) | Send Message
    Murdoch will come back with a bigger offer.
    I'm not sure if this would get past anti-trust regulation. If it doesn't, NFLX will skyrocket and TWX would be a good short (or for me, PUTs).


    Fox would have to sell off most of TWX though (only keeping HBO) in my opinion of an offer is accepted and approved.
    16 Jul 2014, 03:32 PM Reply Like
  • Sakelaris
    , contributor
    Comments (2600) | Send Message
    If a lot of media mergers do occur, could that make Netflix management interested in finding a friendly buyer for Netflix?
    16 Jul 2014, 07:29 PM Reply Like
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