Good Chance for Higher TWX Offer From Fox: Amobi

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July 16 (Bloomberg) -- S&P Capital IQ Senior Analyst Tuna Amobi discusses the $75 billion offer from Twenty-First Century Fox to buy Time Warner. He speaks on “Bloomberg West.” (Source: Bloomberg)

Media and entertainment analyst at s&p capital.

What are the chances that there is a deal that this ends in something?

There is a good chance that you will see a higher offer from foxx.

Look at the way their shares are reacting.

If you look at at murdoch's history, i think when he sets his sights on something, there is a good chance that they will give it a good shot.

The premium that was offered on the initial proposal frankly i thought was a lowball offer.

A company like time warner should command a very very hefty premium given the collection of assets that they have.

What i expect is something that could set the terms and that is likely to happen in foxx comes back with a sweetened offer.

What about comcast, at&t, they are currently occupied?

What if they were available?

I think what you are seeing now is some kind of consolidation on the content aside as we have seen on the distribution side.

Those companies you mentioned, they have their plates full right now.

Companies like cbs and viacom, all of the leading content providers are going to reassess how vulnerable a combined foxx and time warner is going to leave the overall landscape.

I think you see the shares reacting on speculation that this could trigger a wave of content consolidation.

Rupert murdoch certainly doesn't like losing.

What do you think the chances are that he will give up and he will back down?

Well, there's a price for everything, right?

I think what you are likely to see is that he will come back with an offer at least to get time warner talking.

The investors are still focused on the succession question for foxx.

So, part of what has happened is that there has been a spinoff and you have foxx that can make these kinds of merger attempts.

I think that there is a good chance of that rupert murdoch will look at it as his swan song, to make this transformational deal which just frankly a few nuts ago i don't think anyone would have expected that you would see this kind of approach from foxx.

As i said, i think that this will be transformational, if it happens.

Right now there is a chance that the talks will be revived at some point.

If a deal goes through and cnn does need to be sold, who do you think buys it?

We were talking about yahoo!, abc, cbs.

Yes, i did overhear that conversation.

All of those companies are conceivable candidates to acquire cnn.

I would argue there is a lot of value in cnn.

I think perhaps there is someone out there that could conceive of

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

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