Is Time Warner Worth $80B?

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July 17 (Bloomberg) -- Gabelli & Company Analyst Brett Harriss, Ernst & Young Americas Managing Partner Stephen Howe and XLR-8 Founder Robert Nardelli examine the Fox-Time Warner media merger. They speak with Scarlet Fu, Tom Keene and Adam Johnson on "Bloomberg Surveillance.” (Source: Bloomberg)

$85 billion takeover bid.

How viable is this deal at this point, given that just because has set effectively twice he's not interested yet come -- given that jeff bucher this has said he's not interested?

It certainly makes a lot of sense.

In addition to the cost synergies they talked about, there are some soft synergies.

They've got better gold will -- better global scale in terms of distribution content, which is one of the fastest-growing parts of the market does -- these days.

We think it is a great deal.

We think the regulatory concerns can be taken care of.

He saying no for now, but if push tom price, he would get there.

There is not a shareholder who doesn't want this necessarily.

That is likely right.

If you put the bid out there at 85 and let that sit out there for a month or two, get some archives into the stock and raise the bid to $90, $95 -- and by the way, $95 still make sense for both foxx and time warner.

We think it will get done.

He made it clear that the pendulum could swing much higher in valuation.

He turns to you for the specifics.

Help us with the dow income statement, either.

-- ebitda.

We have seen deals anywhere from 10 to 12. i want a stock price.

At $95, they will be paying probably 12.5 times posted synergies, which again, given that the $1 billion energy is conservative, that is still a good deal for foxx.

Adam, back to the bow, $100.60. where did you come up with that number?

I did it with a 15 times extrapolation, plus growth, plus copyright value.

I would add that with long-term debt with -- where it is, foxx would be funding this from new cash.

It is not out of line.

On a multiple basis with what is going on in the market today.

The adjustment for mr.

Harris is cash is free.

Cash is free.

A tremendous opportunity.

It will fuel more deals.

And the companies have been cash and the debt is available and the competition is fierce.

We cited earlier on other shows.

The availability of cash, look at these major corporations with offshore cash.

It is a wonderful way to invest.

We will not see any repatriation

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


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