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Albert Fried On Apple And Time Warner Talks: Not Probable, But Beneficial

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Albert Fried On Apple And Time Warner Talks: Not Probable, But Beneficial

Albert Fried & Company’s Rich Tullo reiterated Time Warner Inc (NASDAQ: TWX) at Overweight with a $90.00 price target. The reiteration came after Financial Times reported Apple Inc. (NASDAQ: AAPL) and Time Warner held preliminary talks “that did not rise to the level of the CFO suites,” according to the analyst.

Related Link: Apple Comes Up Shy Of Triple Digits

The Albert Fried analyst believes these talks could eventually expand to the C-suite, as Tullo believes there are “several reasons why Apple’s Eddie Cue and TWX would talk.” Most notably:

  • 1.) Warner Brothers has an “expansive content library with Global appeal,” creating an advantage in development of new programming.
  • 2.) “Mergers could be driven by anticipated cloud cost savings” as Warner Brothers begins to “extract rent from the Cloud Ecosystem”
  • 3.) Time Warner has valuable content such as Adult Swim, CNN, TBS and TNT, which would be the “core to the offering”

    Tullo later downplayed his above points, saying he “does not see Apple merging with TWX however the talks do support our view that TWX is a strategic value with a catalyst kicker in Warner Brother’s summer movie schedule.”

    At the time of writing, Apple was trading up 0.71 percent and Time Warner up 1.43 percent.

  • Latest Ratings for AAPL

    DateFirmActionFromTo
    Jan 2020UpgradesHoldBuy
    Jan 2020ReiteratesBuy
    Jan 2020MaintainsBuy

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