Sources close to the matter are saying that Twenty-First Century Fox Inc (NASDAQ:FOXA) has re-entered discussions with Time Warner Inc (NYSE:TWX) to acquire the company for $105 per share. While neither company has confirmed the discussions, sources close to the matter seem to think that the deal could happen as soon as next week.
Back in Mid-2014 Fox had initially shown interest in acquiring Time Warner Inc (NYSE:TWX) at $85 per share, but talks eventually fell through in August of 2014. The deal, which would be worth approximately $83.9 billion would value Time Warner Inc (NYSE:TWX) more than 40% higher than their current market cap. We will be watching carefully over the next couple of trading days to see if further news of an offer is leaked or announced.
The stock is currently trading higher by 4.42% or $3.1 following the positive news, hitting $73.3 per share at the time of us publishing this article. About 9.71 million shares traded hands or up 44.28% from the average. TWX has declined 17.48% since June 4, 2015 and is currently downtrending. It has underperformed the S&P500 by 12.79%.
From a total of 18 analysts covering Time Warner Inc. (NYSE:TWX) stock, 15 rate it a “Buy”, 0 a “Sell”, and 3 a “Hold”. This means that 83% of the ratings are positive. The highest target price is $200 while the lowest target price is $77. The mean of all analyst targets is $93.20 which is 27.15% above today’s ($73.3) stock price. Time Warner Inc. was the topic of 36 analyst reports since August 6, 2015 according to the firm StockzIntelligence Inc. M Partners maintained shares on November 27 with a “Buy” rating. Cowen & Co maintained shares with a”Market Perform” rating and a $85 target share price in their report from an August 24. Barrington Research maintained TWX stock in a recent report from November 6 with a “Outperform” rating. Vetr downgraded the rating on August 11. Vetr has a “Strong-Buy” rating and a $89.86 price target on shares. Finally, Credit Agricole downgraded the stock to a “Outperform” rating in a report they issued on a November 5.
The institutional sentiment increased to 0.96 in Q2 2015. It’s up 0.03, from 0.93 in 2015Q2. The ratio improved, as 101 funds sold all their Time Warner Inc shares they owned while 323 reduced their positions. 88 funds bought stakes while 321 increased their total positions. Institutions now own 613.31 million shares which is 7.63% less than the previous share count of 664.00 million in 2015Q2.
Michael & Susan Dell Foundation holds 15.89% of its total portfolio in Time Warner Inc, equating to 316,947 shares. Sls Management Llc owns 198,710 shares representing 10.44% of their total US portfolio. Moreover, Goldentree Asset Management Lp has 7.87% of their total portfolio invested in the company, equating to 699,727 shares. The United Kingdom-based Independent Franchise Partners Llp has a total of 6.83% of their portfolio invested in the stock. Limestone Value Partners Llc, a Texas-based fund reported 81,000 shares owned.
Time Warner Inc. is a media and entertainment company. The company has a market cap of $56.63 billion. The Firm operates in three divisions: Turner, which consists of cable networks and digital media properties; Home Box Office, which consists of domestic premium pay television services, and international premium pay and basic tier television services, and Warner Bros., which consists of television, feature film, home video and videogame production and distribution of digital and physical home entertainment products. It has 16.74 P/E ratio. Turner operates over 165 channels globally.