Who Wins, Who Loses in a Fox and Time Warner Deal?

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July 16 (Bloomberg) -- Bloomberg’s Paul Sweeney and Jon Erlichman report on the companies impacted by a possible Twenty-First Century Fox and Time Warner deal. They speak on “Bottom Line.” (Source: Bloomberg)

So much.

He said hbo was the holy grail that rupert murdoch had his eye on.

Is that what is happening?

A lot of things going on here.

Hbo is a tremendous asset.

Almost $2 billion of operating profit every year.

Tremendous growth here in the u.s. and also internationally.

For murdoch, they are saying a lot of things have changed in this business on the distribution side.

We have seen comcast make a bid for time warner cable.

We have seen at&t make a bid for directv.

The distributors have gotten much stronger.

It rupert murdoch stepped back and said we need to think about our competitive position going forward.

Jon erlichman, apparently mr.

Murdoch sees this as initial rejection.

How soon before fox makes a higher bid?

There are a lot of moving parts.

Fox is interested in pursuing this.

On the content side, sports rights.

Live sports these days, tnt and tbs are places where you see both professional basketball and baseball.

If you were to add those in with the various sports rights that fox already has, you've got a nice combination of both local and national sports.

You're at a time when a lot of people want to watch those sporting events on the go.

They may have cable packages already and want to access that.

Speaking of leverage, beyond hbo, i think it's an important part of this deal.

If not fox, who would be in the best position to make a bid here?

The list is really small.

This is an $80 billion plus transaction.

One of the interesting things to really think about over the weekend, a lot of folks out to invaluable step back and say, do i need to be thinking about time warner?

If i'm a google or an apple and i've already dipped my toe into the media waters over the years, here is an opportunity if i want to get big and to the content business and mary tech content.

-- marry tech with content.

Talk to us about the regulatory risks here.

This happens at a time when we are already seeing a couple of monster deals trying to get the thumbs-up in washington.

Comcast acquiring time warner cable, which is a deal that also includes content because comcast owns nbc.

You have at&t acquiring directv.

There is a certain logic that could be put forward that broadcasters or content players should be in a position to come together in a big way.

There has been a lot of discussion about cnn.

So far, because of the fact that fox is home to fox news and fox has made it known that cnn would not be a part of this transaction.

They would sell that asset to get this deal done.

Talk to us about how a deal would reshape the industry.

He said he thought it would start a feeding frenzy throughout the media world.

Is that possible?

It's possible.

We have been writing about it a lot over the past couple of months in response to the consolidation on the pay-tv business already.

The balance of power is changing a bit.

It's going to the distributors as they get bigger.

That will probably force a lot of the content players to think about bulking up themselves.

It time warner would be the big transaction.

There is a lot of smaller companies that are very strong cable network companies but perhaps they might look at themselves and think we need to get bigger.

Is this about distribution?

It's a huge factor.

Think about the brands that fox has.

To ensure that in a world where they have to negotiate you have the best brands.

Fox sports one has been one of the most organic projects they've been working on.

Jon erlichman joining us from los angeles.

And paul sweeney from bloomberg

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

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