NEW YORK - Time Warner Inc. (TWX) said Monday that it completed the spinoff of magazine publisher Time Inc. into a separate, publicly traded company, as it focuses on its other media properties. As part of the spinoff, Time Warner shareholders were given one share of Time for every eight Time Warner shares they owned as of May 23. Time Inc. publishes People, Time and Sports Illustrated magazines, among other titles, and had been a cornerstone of Time Warner. New York-based Time Warner owns cable TV channel HBO and Warner Bros. studios. Shedding the publishing arm should help the company focus on being a video content company, Time Warner CEO and Chairman Jeff Bewkes said in a statement. Shares of Time Warner rose 68 cents to $68.82 in morning trading Monday. Shares of Time Inc., which had been trading on a when-issued basis under the symbol "TIME" on the New York Stock Exchange, dropped $1.01, or 4.3 percent, to $22.47 in morning trading Monday. … [Read more...] about Time Warner completes spinoff of Time Inc.
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Two titans — the U.S. Justice Department and telecommunications giant AT&T Inc. — are locked in a high-stakes showdown to decide who controls some of the nation’s most popular television channels.The Justice Department sued to block AT&T’s planned $85-billion purchase of Time Warner Inc., the New York media company that owns HBO, CNN, TNT, TBS, Cartoon Network and Hollywood’s largest movie and TV studio, Warner Bros. The dispute — a rare standoff in an antitrust case — will be decided by a federal judge after a trial that begins Monday in Washington, barring a last-minute settlement.The government alleges that AT&T, which already owns the nation’s largest pay-TV provider, DirecTV, would use its added clout to bully others, freeze out new entrants in the TV industry and increase rates for consumers. The Dallas phone company scoffs at such concerns, saying the prices for TV service should go down — not up — if … [Read more...] about AT&T and Justice Department are on a collision course over Time Warner merger
AT&T wants to show political tampering as it seeks evidence about whether President Donald Trump influenced the Justice Department's decision to sue to block the company's proposed acquisition of Time Warner Inc. AT&T wants communications between the Justice Department and the White House about the Time Warner takeover, according to a person familiar with the matter. It's also looking to put the head of the Justice Department's antitrust division, Makan Delrahim, on the witness stand at trial, the person said. If approved, the deal would reshape the media landscape by uniting a telecom giant with the owner of CNN, Warner Bros., TNT, TBS and HBO. AT&T, the owner of DirecTV, is the largest pay-TV distributor, as well as a powerhouse in mobile phones and landlines. The Justice Department has argued that letting AT&T own the films and TV shows that flow down its pipes would harm consumers and competitors. AT&T's move attempts to highlight how the White House may have … [Read more...] about AT&T said to probe White House role in Time Warner case
AT&T is about to enter rare territory, and the consequences could be far-reaching for the company and beyond. Next month, the Dallas-based telecom giant is scheduled to go to trial over its proposed merger with Time Warner Inc., owner of HBO, CNN, Turner and Warner Bros. studios. The U.S. Department of Justice wants to block the deal, saying the merged company would raise monthly bills for pay TV and slow the growth of new video distribution models. “This merger would greatly harm American consumers,” Assistant Attorney General Makan Delrahim said in November. That’s not uncommon language in antitrust disputes. Usually it’s part of a negotiating process that leads to concessions, conditions and a settlement. Sometimes it ends with companies abandoning the deal. In a very few cases, it ends in court. In fiscal year 2016, companies proposed over 1,800 mergers and acquisitions for review by U.S. regulators. The overwhelming majority didn’t require a … [Read more...] about Why AT&T’s legal fight over Time Warner is a once-in-a-generation showdown
Time Warner Inc. (NYSE: TWX) ended 2017 with a bang. On the back of strong subscriber growth from its premium HBO property, the television and film giant beat expectations by posting fourth-quarter revenue of $8.61 billion versus estimates of $8.42 billion. The company soundly beat the consensus adjusted EPS estimate, too, reporting $2.66, 85% higher than the $1.44 analysts expected. Time Warner also gave positive guidance for 2018, expecting adjusted operating income growth to be in the high single digits this year. Naturally, you'd expect shares to rally in response to Time Warner's blowout quarter. And you'd be mostly wrong: Shares increased less than 2% on the day of the announcement. Here's why nobody cares about Time Warner's great quarter. Image source: Time Warner Inc. Widespread growth for Time Warner Time Warner's success was widespread in the fourth quarter. The company's ad-supported Turner division -- which includes TNT, TBS, and CNN (more on CNN later) -- … [Read more...] about Here’s Why Nobody Cares About Time Warner’s Earnings