Boston, MA 10/13/2014 (wallstreetpr) – Twenty-First Century Fox Inc (NASDAQ:FOXA) has put Time Warner Inc (NYSE:TWX) in a fix as the latter has to justify that why it could make sense as an independent company. Time Warner Inc (NYSE:TWX) has rebuffed Twenty-First Century Fox Inc (NASDAQ:FOXA)’s $85 per share bid offer to buy it. This has left Time Warner’s CEO Jeff Bewkes upto a challenge to prove that how it is self-sufficient to perform in the future years.
Reason To Reject
The reason to be presented by Bewkes should be reasonable enough to convince investors and analysts, who are eagerly awaiting the company’s plans. Twenty-First Century Fox Inc (NASDAQ:FOXA) had thrown an enticing $85 per share price to buy Time Warner, which is quite high above its current trading price of around $71. In fact, First Century Fox was willing to raise up the bid to $95 per share. But, it heard only blunt ‘no’ from Time Warner, forcing it to walk off from the offer.
The rejection came at a cost to Time Warner Inc (NYSE:TWX) as its share prices lost more than 15% since it decided to not to take the offer on the table. Gabelli & Co analyst Brett Harriss said that the investors want Bewkes to explain the basis on which he refused the offer. Also, it means pressure on Bewkes to work harder to get the company’s share price reach at least to a level of $85 now. Gabelli thinks that Time Warner and Twenty-First Century Fox Inc (NASDAQ:FOXA) would become an attractive play in the industry, when combined.
Long Term Vision
Meanwhile, Bewkes will face investors on Wednesday, where he is expected to announce a series of plans related to Turner Broadcasting cable networks, Warner Bros movie studio and pay TV channel HBO. Some of the major announcements expected is to allow HBO viewing directly without having a cable subscription. While others estimate that the company could adopt to Netflix, Inc (NADAQ:NLX) like model to create new market. In fact, off late, Bewkes has also expressed interest into Netflix’s kind of operation.
