Time Warner Inc (TWX) Acquisition Rumors Heat Up


It’s been a couple weeks since shares of Time Warner Inc (NYSE:TWX) popped on takeover rumors, but some of those same rumors seem to be heating up once more. This time, possible offers include one from AT&T, who may be looking to ramp up their media services.

While Time Warner Inc (NYSE:TWX) could likely be purchased south of $100 billion, AT&T is coming off of a major aquisition of DirecTV, which more than likely has been keeping executives quite busy. While Time Warner may fit into their business plan to some extent, especially if Turner Broadcasting is spun out of the main entity like rumors have suggested, At&T may just not be ready for another major acquisition quite yet.

With all this said, there are numerous other entities who may have interest in a complete or partial takeover of Time Warner Inc (NYSE:TWX). It will be very interesting to see where things stand after another 4-6 weeks. The stock increased 2.03% or $1.41 on January 22, hitting $70.89. TWX has declined 19.73% since June 18, 2015 and is downtrending. It has underperformed the S&P500 by 10.86%.

From a total of 19 analysts covering Time Warner Inc. (NYSE:TWX) stock, 16 rate it a “Buy”, 0 a “Sell”, and 3 a “Hold”. This means that 84% 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 $92.49 which is 30.47% above today’s ($70.89) stock price. Time Warner Inc. was the topic of 37 analyst reports since August 6, 2015 according to the firm StockzIntelligence Inc. Drexel Hamilton initiated shares on January 14 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. Barclays Capital maintained TWX stock in a recent report from November 13 with a “Equal-Weight” rating. Vetr downgraded the rating on August 11. Vetr has a “Strong-Buy” rating and a $89.86 price target on shares. Finally, Bank of America downgraded the stock to a “Neutral” 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 increased, 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 $56.68 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 16.19 P/E ratio. Turner operates over 165 channels globally.