HBO’s content is all under Time Warner.
Warner Bros. has their division that brings hefty profits from movie franchises like DC Comics (Batman, Superman, Aquaman, Wonder Woman, etc), Harry Potter / Fantastic Beasts, and other popular current mega movie hits.
Add the consumer products division that licenses the various brands of said movie titles for retail merchandising, licensing of slot machines in Vegas from shows/movies like Ellen DeGeneres, Willy Wonka, The Hangover, etc, profit sharing from licensing the Harry Potter theme park experiences, leasing of warehouse spaces for show/movie production, etc. etc. etc.
TWX is a profitable company that T should be so lucky to own if the silly anti trust legalities are successfully argued in favor of T’s offer going through.
There’s a reason TWX turned down Fox’s hostile bid a few years ago. And if for some reason T is unsuccessful in their acquisition, you can bet there will be more suitors looking into acquiring TWX. This is exactly what Jeffrey Bewkes has been priming TWX for.
The valuation of the acquisition is fair.
Point being, T is smart to try and acquire TWX. They have the subscriber base, way of delivering content via DirecTV and mobile platforms, and they’re working to get content. It’s a win win for all.
Even though I’ve taken some T and TWX shares off the table last fall, both companies have been, and still are great stocks to own.
Long on both.
Rec
