Fox Aims for Time Warner: Why a Deal Makes Sense

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July 16 (Bloomberg) -- Twenty-First Century Fox is prepared to offer more than $85 a share for Time Warner, according to a person with knowledge of the matter. Bloomberg's Edmund Lee talks to Betty Liu on “In The Loop.” (Source: Bloomberg)

Ed lee joins us now with more.

Another big deal rupert murdoch is known for, but he got rebuffed.

Jeff bewkes, who runs time warner inc., he thinks it is better for the company to remain independent.

He has been selling off assets.

When he first took over, he sold off -- she spun off aol and time warner cable.

Recently, he's been off -- recently, he spun off time inc.

It is a much cleaner and more focused company in terms of being a pure play video entertainment business, which would fit in with fox.

Was in google rumored to be a better for time warner?

That is a bit more far-fetched.

We don't have reporting that the kids anything real with any kind of silicon valley company.

Philosophically, it makes sense that some of the emerging silicon valley companies with want more content.

Google has youtube, it is a business that has not found its footing.

It is growing but it is unclear what the business model is.

Time warner has a great business model.

Whether it is google or facebook or a silicon valley company, they would like to have because it is a content company with a figured out business.

That is more far afield.

There are not any real discussions.

The thing with fox makes more sense from a balance sheet and philosophical perspective.

Isn't there a little bit of the old rupert murdoch taking a stab at some of his rivals?

We know the rivalry between when he started fox news and cnn.

What may be great for report murdoch -- wouldn't it be great for rupert murdoch to be able to acquire his rival?

Especially since fox news is the undisputed leader in cable news right now.

If a deal were to happen, regulators would look at that and say you cannot own both fox news and cnn.

Chances are he would want to spin off cnn.

I think ultimately what he really wants is to bulk up his company.

The reason for that is consolidation happening on the distribution side -- time warner cable and comcast merger, at&t-directv merger.

It makes sense for content companies to get bigger.

Thank you for joining us.

Our bloomberg news reporter on the story.

I will bring in david kirkpatrick, author of "the facebook effect." matches rupert murdoch who wanted to put time warner in play.

Some of the big silicon valley companies were rumored to have won a time warner -- wanted time warner.

I would downplay the idea

This text has been automatically generated. It may not be 100% accurate.


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