Boston, MA 08/07/2014 (wallstreetpr) – Time Warner Inc. (NYSE:TWX) reported $850 million in profits in second quarter that beat analyst’s estimates despite Twenty-First Century Fox Inc (NASDAQ:FOX) withdrew its $80 billion bid takeover of the company. Earnings excluding one time items were 98 cents a share compared to analysts’ estimate of 84 cents a share. However, sales stood at $6.79 billion lower than average estimate of $6.88 billion. The company also plans to buy back $ 5 billion of its shares.
Time Warner’s Little Interest
Fox decided to stall its takeover bid of Time Warner Inc. (NYSE:TWX) for $80 billion, a deal which would have created a world largest media giant. Fox CEO stated that Time Warner’s management and its board of director’s unwillingness to negotiate a deal was the reason for the turnaround of the bid. From the news of bid was out, the shares of Fox showed a fall reflecting investor sentiments of unattractiveness of the deal.
Looking Towards East
Time Warner’s HBO is now looking to Asian markets like Japan and Turkey with developed broadband infrastructure to provide its trademark services. The programming and licensing fee in these countries is relatively small making them smart investments. Facing stiff competition from companies like Netflix, Inc. (NASDAQ:NFLX) and Amazon.com, Inc. (NASDAQ:AMZN), HBO is showing relatively low interest in video streaming services on its line of television services in home country (U.S). HBO is rather content with its European operations where it is generating nearly $1.8 billion about one quarter of Time Warner’s total revenue supported by some of the famous television series.
The Problem With Television Users
Time Warner Inc. (NYSE:TWX)’s Cable wing reported earnings that did not meet analysts’ estimates. Due to competition from online video streaming companies like NetFlix, TV packages offered on smartphones or seasonal cut in connections, the Cable operators have been losing significant percentage of customers. The Cable wing posted second quarter earnings of 1.89 a share excluding some items, while analysts estimated value was $1.9 a share. However, Time Warner Cable is looking forward for impending merger with Comcast Corporation (NASDAQ:CMCSA) to turnaround the grim situation for the investors.
