Rupert vs. Time Warner’s Board: Round 2?
The New York Post’s Claire Atkinson and Richard Morgan write about a possible new offer for Time Warner…
“They’ll start working on the common shareholders to appeal to the Time Warner board,” said one executive familiar with Fox’s thinking. “I’m sure they have a very sophisticated plan.”
Fox and Time Warner have 11 major shareholders in common. Together they account for 38.4 percent of Time Warner’s outstanding shares and 42.7 percent of Fox’s. Among them are Capital Group, BlackRock, JPMorgan Chase and Vanguard.
“The question is how do these people want to do this trade? They are trading into themselves. At what price do these guys feel they got a good trade?” said one person familiar with discussions.
“We have no problem taking Rupert’s offer,” said Mario Gabelli, chief executive of Gamco. “Essentially his vision over the next 10 years is about the growth of the middle class in China. Smartphones are giving them access to content.”
Ironic to see Time Warner fend off a big media buy from Fox when over a decade ago Time Warner made a mega big media buy itself…AOL (ok, ok, it was really a merger). And we all know how that turned out…