By Joe Flint, Joe Flint The Wall Street Journal BiographyJoe Flint @JBFlint [email protected] Drew FitzGerald and Drew FitzGerald The Wall Street Journal BiographyDrew FitzGerald @drewfitzgerald Google+ [email protected] Alexandra Bruell Alexandra Bruell The Wall Street Journal BiographyAlexandra Bruell [email protected] June 13, 2018 6:05 p.m. ET 95 COMMENTS Last month, comedian Samantha Bee used a vulgarity to describe Ivanka Trump on her TBS show. It was bleeped on air, but ran online, and set off a scramble inside Time Warner Inc., the network’s parent company. Advertisers pulled out. Ms. Bee apologized. Time Warner Chief Executive Jeff Bewkes was furious. The comedian’s defenders argued that stars on sister channel HBO get to cross lines all the time, people familiar with the matter said. In the end, Ms. Bee wasn’t suspended. Congratulations, AT&T Inc., T -2.90% now all this is yours. The telecom giant this week … [Read more...] about AT&T’s Time Warner Prize—A Load of Hollywood Headaches
Aol time warner
Last Updated Jun 13, 2018 3:16 PM EDT The last time $100 billion was spent buying Time Warner was back in 2000, when the media giant joined forces with the dotcom-era darling AOL in a stock-based merger that proved so disastrous it's widely seen as the worst corporate marriage in history.It turned out that after the dotcom crash, an overly inflated AOL was forced to take a monstrous goodwill write-off of nearly $99 billion on Time Warner in 2002. AOL's market value slumped from $226 billion to around $20 billion. A few years later Time Warner spun off its Time Warner Cable division and then AOL as independent companies. The vastly shrunken AOL was acquired by Verizon in 2015 for just $4.4 billion.Looking back, the AOL-Time Warner deal was marred by cultural incompatibilities and AOL's inability to respond to the rise of broadband vs. dial-up internet access. AOL lost its competitive position and couldn't extract the expected financial synergies from the deal. Fast forward … [Read more...] about AT&T-Time Warner deal raises specter of AOL Time Warner deal
By Gunjan Banerji Gunjan Banerji The Wall Street Journal BiographyGunjan Banerji @gunjanjs [email protected] June 13, 2018 5:30 a.m. ET 1 COMMENTS AT&T ’s T -5.82% victory in its legal battle to buy Time Warner Inc. TWX 2.12% likely handed a win to merger arbitragers, particularly some of Wall Street’s biggest hedge funds, who had bet the deal would go through. The deal has attracted interest from big firms. Hedge funds such as Highfields Capital, Baupost Group, Sachem Head Capital Management, Paulson & Co., Fir Tree, Oz Management, and Pentwater Capital Management all reported holding Time Warner shares in recent regulatory filings. Shortly after 4 p.m. on Tuesday, U.S. District Judge Richard Leon approved the roughly $80 billion merger. The decision sent shares of Time Warner rallying, a boon for merger arbitragers, who buy shares of the takeover target on the bet they will rise to the agreed-upon deal price. The scale of the deal also … [Read more...] about Hedge Funds Are Poised to Be Winners in AT&T-Time Warner Deal
Time Warner also said the deadline for the antitrust review of its deal with AOL has been extended to mid-December, giving the Federal Trade Commission added time to examine this latest development. The deal reached Monday means that subscribers to Time Warner's high-speed Internet cable service will be able to select EarthLink - and not just AOL - as their online provider. The EarthLink arrangement won't take effect until Time Warner and AOL receive regulatory approval and close their deal - which the companies expect to happen at year's end or early in 2001. Time Warner also must complete its negotiations to get out of an exclusivity agreement with Internet provider Road Runner. But the agreement with EarthLink could remove a major stumbling block in the government's review of the AOL Time Warner deal. The FTC has demanded that the merging companies give Internet providers other than AOL access to Time Warner's high-speed cable lines before it approves the deal. The agency wants to … [Read more...] about CBS News Logo Time Warner Cable Offers Competitor
Last Updated Dec 3, 2009 9:00 AM EST We're finally at the point where Time Warner (TWX) is going to spin off AOL, which was originally the acquired in one of the most ill-conceived merger deals of all time. And now what happens? Comcast (CMSA) decides that it isn't satisfied with creating a trend of increasing share prices. No, it sees a vacuum in the really bad idea space, and so will buy a controlling stake in NBC Universal, just because someone apparently had to. And they want to be in pictures. Doesn't everyone? Oh, there will be rationalizations aplenty. Content. Synergy. Vertical entertainment integration. You know -- all those things you heard when AOL was acquiring Time Warner, back when at least some people assumed that such corporate combinatorics were all the rage. But there were some clear reasons why the arguments held as much water as a ripped sieve: Running a distribution business through data pipes, which is what AOL did and Comcast does, is far different from running … [Read more...] about Comcast Not Satisfied With Success, Decides to Become AOL Time Warner
Shares of Time Warner (TWX) surged nearly 18 percent Wednesday after the media and entertainment conglomerate rejected an unsolicited $80 billion takeover offer from Rupert Murdoch's 21st Century Fox (FOXA). The cash-and-stock offer valued Time Warner, whose properties include the Warner Bros. studio, HBO and TBS, at $85 per share, a roughly 20 percent premium to the company's recent stock price. Shares of 21st Century Fox, whose holdings include Fox News Channel and the FX cable channel, fell 4.7 percent to $33.54. Both companies have confirmed that talks were held but have subsequently broken off. Fox made a formal proposal to Time Warner last month. The deal, which had been rumored in media circles for weeks, would be a pricey one. Time Warner's market capitalization is $74 billion. But many on Wall Street seem keen on the acquisition. "It would be a dream combination," said Tuna Amobi, an analyst with S&P Capital IQ. "The premium that was suggested in the first offer … [Read more...] about Time Warner shares surge after Murdoch bid rebuffed
NEW YORK - Twenty-First Century Fox (FOX) is ending its blockbuster bid to buy Time Warner (TWX). The about-face announced Tuesday comes three weeks after Time Warner revealed that it had rejected 21st Century Fox's unsolicited $76 billion buyout offer, which would have combined two of the world's biggest media companies. 21st Century Fox CEO Rupert Murdoch defended what he described in a statement as a "friendly" takeover offer, saying that the deal had strategic merit and was financially sound. "However, Time Warner management and its board refused to engage with us to explore an offer which was highly compelling," he said. "Additionally, the reaction in our share price since our proposal was made undervalues our stock and makes the transaction unattractive to Fox shareholders." In touting its offer for Time Warner, Fox had estimated that the merged company could generate $1 billion in savings. Murdoch also cited a decline in his New York company's stock price as one of the reasons … [Read more...] about 21st Century Fox withdraws bid for Time Warner
AT&T (T) Chief Executive Randall Stephenson, whose planned $85.4 billion acquisition of Time Warner (TWX) stunned Wall Street and aroused concerns in Congress, has already started laying out his case for why the megadeal won’t hurt consumers. In a public appearance on Monday with his Time Warner counterpart, Jeffrey Bewkes, at the WSJDLive conference in Laguna Beach, California, Stephenson unveiled plans for a so-called over-the-top $35-per-month streaming video service that would offer 100 premium channels and wouldn’t require a subscription to a cable and satellite provider. It’s aimed at the mostly young consumers known as cord-cutters who are quitting traditional pay TV. Critics across the political spectrum and some Wall Street analysts, however, remain skeptical and wonder whether consumers will benefit from one of the biggest transactions in recent years. “From my observations over the years, megamergers of this kind almost never benefit average … [Read more...] about AT&T-Time Warner: Is there anything in it for you?
Time Warner (TWX) CEO Jeffrey Bewkes, who has earned more than $68 million in compensation over the past five years, stands to reap tens of millions more if he can shepherd the media and entertainment giant through its $85 billion sale to AT&T (T), according to an executive pay consultant. The 64-year-old Bewkes, who has headed the New York-based media conglomerate since 2008, would be able to receive about $32 million in salary and bonus continuation if his employment is “terminated without cause” for reasons including a company sale, according to executive compensation consultant Brian Foley. Unlike many Fortune 500 executives, Bewkes and other senior Time Warner managers don’t have specific “change-in-control” provisions in their employment agreements that would be triggered in the event of a sale of the company. But like other shareholders, Bewkes would benefit from a surge in the company’s stock price. And he now has more than 4.4 million … [Read more...] about Time Warner’s Jeff Bewkes could have a hefty payday
AT&T’s (T) planned $85 billion purchase of Time Warner (TWX) announced Saturday may face some of the same challenges as a megamerger from another era: AOL’s $182 billion acquisition in 2001 of, yes, Time Warner, the parent company of Warner Bros., HBO and CNN and the target of what many veterans of mergers and acquisitions consider to be Wall Street’s worst deal ever. Of course, many circumstances of the two deals are different. AOL was hurt as dotcom mania peaked by its fading dial-up Internet business. Plus, accounting gimmicks had goosed its growth numbers, which caused the combined AOL Time Warner to take a whopping $54 billion write-down in 2003 to reflect its diminishing value. New York-based Time Warner eventually spun off AOL in 2009, and the Internet publisher was acquired in 2015 for a modest $4.4 billion by AT&T rival Verizon (VZ). Verizon now also plans to buy Internet pioneer Yahoo (YHOO) for $4.8 billion. “AOL and Time Warner were about as … [Read more...] about A second big buyout for Time Warner. Should investors run?