Fox-Time Warner Deal Would Value CNN at $20B: Bibb

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July 16 (Bloomberg) -- Porter Bibb of Mediatech Capital Partners and Brad Hintz, analyst at Sanford C. Bernstein, discuss the value of CNN if Time Warner was to be bought by Twentieth-Century Fox and who may be a perfect match for the news network. They speak on “Bloomberg Surveillance.”

That are the jewel in the crown, but a 20% of the revenues.

Why pay that kind of number for what is just 1/5 of the company?

He will be able to monetize cnn by spinning it out.

He will not be able to keep to news networks -- two news networks.

And cnn is still making money.

It is not going anywhere, and foxx news has killed it in terms of ratings.

What is cnn worth?

And forgive me for interrupting.

That is a good question.

It has got to have at least one quarter, maybe one third of the whole value of time warner.

There are a lot of people who would be very interested in cnn outside the u.s. wait a minute.

Repeat that.

If time warner -- this is a deal of what size potentially echo over $80 billion.

That is right.

And you think cnn is effectively worth a quarter of that, so $20 billion?

Maybe $20 billion, yes.

You've got to consider the franchise it has and the fact that despite the fact that it has no real audiences anymore in the u.s., it's still a global franchise and profit.

It is a reflection of how much rupert murdoch think hbo is worth.

It is.

I guess it is a game of thrones transaction.

Brad hintz is with us as well.

Is this what janet yellen is talking about?

What is decreed it and what is diluted?

If i am bringing my earnings-per-share down by an acquisition, essentially i am deluding the shareholders.

If i am increasing it, that is secreted.

-- secretive.

The reason the private equity people are -- cannot compete, his cat -- private equity looks to cash flow in terms of valuation.

And corporate entities can believe in a fictitious piece of entity -- of energy.

You can get the numbers to look a lot better if there is this synergy that is somehow bringing your management teams together.

Porter, can there be synergy in a foxx-time warner combination?

Well, sure.

A lot of redundant expenses.

If you fold warner bros.

Into 21st century foxx's film and television operations, that will be very accretive and synergistic mix.

Hbo, i keep saying, is really the plum in this deal.

And there is no synergy, because they don't have a pay-tv network at foxx.

Variety has reported earlier this week that google was also interested in buying time warner.

Judge nook is denied noting -- knowing anything about it at sun valley.

Where does this play in the major merck -- in the mega deals in the merger sector?

I would not be surprised if google did not snap up cnn.

It is a perfect complement to you too, which is growing and is going to be a major content network distribution system.

Worldwide.

Porter bit, thank you so much.

A wonderful perspective this morning, this entire interview with porter and brad.

Brad, thank you as well.

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

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