Time Warner will likely be fantastic even when the federal government blocks the bid from AT&T to purchase the corporate.
That’s the phrase from John Martin, the free-wheeling chief government of Time Warner subsidiary, Turner Inc., who was talking on the Code Media convention in Huntington Seaside.
For the document, Martin says that the federal government’s place on the acquisition provide is “silly” and that it’s going to probably lose its case. “It’s a huge misallocation of sources and capital to battle this factor,” Martin mentioned. “They’re going to lose.”
Martin argued that whereas the worth of AT&T had remained flat after information of the acquisition broke, Amazon and Google added roughly the equal of the telecommunications firm’s market cap over the identical interval. In the meantime Fb’s valuation grew to the dimensions of two Time Warners, Martin mentioned.
“So if you happen to’re the federal government and also you’re anxious about fixing the aggressive panorama, what are you anxious about?”
His level was that the aggressive panorama wouldn’t be harmed by a merger of the 2 corporations.
“Within the historical past of the nation, what vertical merger has tilted the panorama of the aggressive surroundings? Let me provide the reply: Zero.”
Nonetheless, ought to for some cause the federal government make its case, Time Warner may survive… for a time. The corporate is coming off of its finest yr throughout most of its media properties, in accordance with Martin.
“Time Warner is a reasonably, steady, large profitable firm. So I imply, HBO is on fireplace proper now. Warner Brothers had probably the most profitable yr in its historical past in 2017. We did too. No matter occurs occurs,” mentioned Martin. “The longer term is absolutely brilliant.”
That mentioned, consolidation is the secret, and may Time Warner not be purchased by AT&T it could want to search out one other acquirer ultimately.
Martin and his fellow panelist, A+E Networks chairman and chief government Nancy Dubuc famous that on this new media panorama dimension does matter. They each anticipated that Viacom must reintegrate with CBS — and that statement issues for Martin’s personal evaluation of Time Warner’s stability.