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ANALYSTS: MURDOCH STILL COVETS TIME WARNER

July 17, 2014 by · Leave a Comment 

Rupert Murdoch is not the sort of media mogul who would put his tail between his legs and slink away after his bid to buy Time Warner for $80 billion, or about $86 a share, was rejected, analysts indicated on Wednesday. Many analysts agreed with a Reuters assessment that the 83-year-old Murdoch wants to pull off the deal to cement his "status as the most powerful magnate in U.S. media and entertainment." Time Warner must certainly be aware of that as well, analysts observed. Company executives are telling investors that they can increase the value of the company’s shares to the level of Murdoch’s bid — and beyond. And they’re not confident in the stability of Murdoch’s 21st Century Fox’s shares. At the very least they expect Murdoch to raise his bid to $90-95 billion and substantially raise the cash component of the deal. Wells Fargo Securities analyst Marci Ryvicker said in a note to clients, "We believe this transaction makes strategic and financial sense — even at $100 a share." Today’s (Thursday) Los Angeles Times which quoted Ryvicker, noted that at $100 a share, the deal would be valued at $91 billion. And if Murdoch balks at such a proposal, well, Gamco Investors chief Mario Gabelli said that he believes that a company with more cash than Fox, such as Apple or Amazon, could make a play for Time Warner. As the Financial Times, which also predicted the emergence of other bidders, noted today: "The question for Time Warner shareholders is whether the best buyer is Mr. Murdoch."