Fox-Time Warner Deal: What's the Timeline?

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July 24 (Bloomberg) -- Bloomberg’s Alex Sherman updates the latest news on a possible Twenty-First Century Fox and Time Warner deal. Sherman speaks on “Bloomberg West.” (Source: Bloomberg)

Developed this week.

Agreed, there has not been all that much progress this week . the question is what is the timeline on this thing?

That depends on who you ask.

If you asked outsiders, analysts, other bankers not working on the deal, they assume it is only a matter of time before fox acquires time warner.

If you look at the market, investors feel the same way.

The stock is trading above its $85 price.

Clearly, they think some deal will be done, either by fox or some other company.

From my company, no other company is interested in making a bid.

Is part of that, that they are busy?

Not that the teams could not handle it, but getting it through the fcc and ftc -- you have bottlenecks at dish, at&t, comcast -- all trying to push these deals.

Maybe t-mobile and sprint is not the best candidate, but maybe it could be?

In essence, that is time warner's argument not to sell now.

All of these potential buyers, verizon, at&t, comcast, are tied up in their own deals and have taken themselves out of the running.

So time warner is saying why should we sell now when you cannot get fair value because all of these other bidders that could compete with fox are not bidding?

Are they not interested or are they just busy?

It is unclear.

If you go to those companies directly, they probably will not say anything on the record, but from my reporting, i think some of those companies -- in fact one source told me that rise about that time warner and past.

At&t and comcast are large companies now, they -- would they be willing to shell out another $90 billion?

Maybe they would just push up the price higher.

Comcast in particular is are doing this will lead to more competition in the future.

They cannot then suggest another company -- you have to believe that regulators would have to take a close look.

It would make the media company really big.

The fox-time warner is probably easier for regulators, so that is on fox's side, in addition to the other things.

Quickly, the changing of the bylaws to prevent shareholders from calling a special meeting.

How big of a roadblock is that?

Probably fairly significant in the near term.

Time warner was far to do that.

There has been a 50% change in shareholders already -- 15% change in shareholders already.

They will push for a deal.

Time warner did this in order to say, you step aside, let deal with our long-term institutional shareholders who really know about this company in order to make our pitch that we can have longer value.

That may delay things so that fox is basically put in a position where they want you to raise their bid, and in essence, bid against themselves, in order for time warner to come to the table.

Thank you so much.

We will be right back with more "bloomberg west" after this

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


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