Boston, MA 10/15/2014 (wallstreetpr) – Jeffrey L. Bewkes, the CEO of Time Warner Inc (NYSE:TWX), rejected a $80 billion takeover plan from Twenty-First Century Fox Inc (NASDAQ:FOX). After that decision, Bewkes have to consider the options as to how it can take Time Warner on the growth track. In the same matter, he will discuss his growth plans during an investor meeting scheduled on Wednesday. Time Warner has to carefully evaluate the growth plans as it is now a pure entertainment company with no exposure in the cable, internet or magazine business.
The battle
There are lot many problems existing in the industry. The first main is the pending consolidations among satellite and cable companies. Also, there are various changes seen in the way people watch movies and televisions. The companies are switching from traditional business models to the new forms for survival in a competitive industry. In such a scenario, the big question is whether Time Warner Inc (NYSE:TWX) has the products, resources and team to compete on its own?
The expectations
The analysts expect Bewkes to combine a number of options for improving the market share of Time Warner Inc (NYSE:TWX). They expect the focus to shift on original programming and exploring digital business opportunities. They even see Bewkes going ahead with cost-cutting measures across Time Warner Inc (NYSE:TWX)’s film and television properties. Turner Group has already disclosed its plans of cutting the workforce by about 10% last week. The group of cable networks is constantly facing the problem of rating declines. Turner can choose to expand its original programming to improve ratings.
The areas of focus
Analysts expect that the major area of focus is going to be HBO. They expect the plans that can result in a rise in domestic subscribers. They will seek answers related with the new streaming service of HBO. Time Warner Inc (NYSE:TWX) will have to address a series of questions including its plans to make money from the various other sources like TV library and others.
