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