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Lachapelle: Don't Be Surprised If Fox-Time Warner M&A 'Comes True'

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Bloomberg is now reporting speculation that Twenty-First Century Fox Inc (NASDAQ: FOXA) might make a new bid for Time Warner Inc (NYSE: TWX), a story that was reported last week on Benzinga.

About a year-and-a-half ago, Time Warner CEO Jeff Bewkes rejected an $85/share buyout offer from Fox, but Bloomberg columnist Tara Lachapelle believes that the potential deal still makes sense.

TV content providers are under attack by a wave of new digital content providers like Netflix, Inc. (NASDAQ: NFLX), and consolidation on the cable side of the business has already exploded, including with headline merger deals by Charter Communications, Inc. (NASDAQ: CHTR)/Time Warner Cable Inc (NYSE: TWC) and AT&T Inc. (NYSE: T)/DIRECTV.

Related Link: 21st Century Fox Rekindles Bid For Time Warner At $105/Share; Company Denies M&A

Last week, a source familiar with the matter told Benzinga that Fox is still interested in Time Warner, but a representative from Twenty-First Century Fox called the report “categorically untrue.”

However, the market seems to believe that Fox is simply trying not to tip its hand on a potential deal at this point, as shares of Time Warner are already up 10.5 percent so far in a horrendous 2016 market.

Disclosure: the author holds no position in the stocks mentioned.

Posted-In: Fox M&AAnalyst Color Long Ideas News Rumors M&A Movers Trading Ideas


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