Twenty-First Century Fox Inc (FOX) & Time Warner Inc (TWX): Turner’s Turnaround Might Keep Bids Away

Amol Sharma, deputy bureau chief of the Wall Street Journal, has said in a piece on Fox Business that Time Warner Inc (NYSE:TWX) needs to fix Turner Cable Networks in order stave off takeover bids from Twenty-First Century Fox Inc (NASDAQ:FOX). Sharma argues that 50% of the profits come from this side of the business, which had double digit operating income growth over the last five years and propelled the stock higher.

Twenty-First Century Fox Inc (NASDAQ:FOX)

However, Turner’s ratings are beginning to slide, as the competition in the cable landscape is becoming fiercer day by day, with hit shows like AMC’s Breaking Bad and FX’s Sons of Anarchy scooping up lots of viewers. Finding a way how to compete in such an environment is key to keeping Time Warner Inc (NYSE:TWX) as a standalone company, Sharma says.

Time Warner Inc (NYSE:TWX) is currently in search for a CEO for its entertainment division after Steve Koonin, which served for fourteen years, left the company. Sharma says the company is trying to find “somebody new now, who could inject this youthful, edgy style of programming into the company.” So far, however, all reviewed candidates have not met this requirement. Nevertheless, the company is confident it will find the right fit in the next months.

The current Twenty-First Century Fox Inc (NASDAQ:FOX) offer for Time Warner Inc (NYSE:TWX) stands at $85-a-share or $18 billion and, as expected,  has been rejected by the company’s management. According to Mr. Sharma, to bring the management on the negotiating table, Twenty-First Century Fox needs to “sweeten” its offer to “north of $100.” Ultimately, he says, the decision is upon the shareholders, to either go with Twenty-First Century Fox Inc (NASDAQ:FOX) which offers a premium of around 20%, or to stay with CEO Jeffrey Bewkes who promises higher returns.

Should the deal materialize, Twenty-First Century Fox Inc (NASDAQ:FOX) will spin-off CNN, the popular but struggling news channel. Pundits argue that as a standalone company, it could reach a market valuation of between $6 billion and $10 billion.


Disclosure: none

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

7 High-Paying Jobs You Can Do From Home

12 Best Cities to Shop in USA

10 Best States To Practice Medicine

The 10 Best States to Have a Business

The 12 Most Expensive Apple (AAPL) Apps in the Market

The 10 Richest Billionaires in the World

10 Biggest Kickstarter Failures

The 10 Best Places to Work At

The Top 10 of Google Inc (GOOGL)’s Most Expensive Acquisitions

13 Best Cities to Visit in South America

10 Most Expensive Works of Art of All Time

The 10 Richest Banks in the World

The 10 Best-Paying Jobs in America (2014)

7 Most Expensive Foods in the World

The World’s Top 10 Earning Authors

Five Wicked and Very Expensive Items (and Other “Stuff”) Sold on eBay

10 Biggest Celebrity Bankruptcies

The Top 10 Highest Paid CEOs in 2014

The 10 Most Expensive Real Estate Cities in America

10 Most Expensive States To Live In America

The 10 Best Airlines in the World

The 10 Best-Selling Cars in 2014

The 10 Best Industries to Invest In

The 10 Most Expensive States to Own a Car In

Top 10 Business Schools in US: 2014 Rankings

Top 20 Female Billionaires in 2014

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!