Time Warner Inc. (NYSE:TWX) is one of the biggest media and entertainment company. Many other media and entertainment giants pursued the option of acquiring and merging with Time Warner but none of them went through successfully.
Twenty–First Century Fox Inc (NASDAQ:FOXA) had submitted their bid of $80 billion, $85 per share, to the Board of Directors of Time Warner Inc. (NYSE:TWX) which then rejected the bid. The Board stated that the price quoted was too low. With all these bids and rejections in the air, Moguldom Media Group Chief Creative Officer, Marve Frazier talked on Fox Business about the possibility of Amazon.com Inc (NASDAQ:AMZN) acquiring Timer Warner Inc. (NYSE:TWX) and the possible impacts on the business if that goes through. In other rumors, Google Inc. (NASDAQ:GOOGL) is said to also possibly be in the race to take over Time Warner.
Time Warner Inc. (NYSE:TWX) has good content and that stimulates the interest from all the big companies to have them under their wing, Stuart Varney said in the interview. Due to this extremely valuable content that they possess, the company value keeps rising. This may not be very good news for streaming companies like Netflix, Inc. (NASDAQ:NFLX), Varney added.
Frazier agrees that if the Time Warner deal goes through, then streaming companies like Netflix may face extremely tough competition. She said that Time Warner owns HBO and currently, HBO alone is valued at close to $20 billion. She added that they have some award-winning premium content like Game of Thrones, Girls, etc. Even though Netflix possesses some premium original content like Orange is the New Black and House of Cards, she thinks that Netflix has limited inventory.
The idea of Amazon.com Inc (NASDAQ:AMZN) acquiring Time Warner sounds amazing and interesting, she said.
“Amazon, they already have streaming service also, they are Amazon Instant Prime video streaming, already has original programming and HBO content that’s older that you can get such as Sopranos and The Wire, currently now on the Amazon streaming service. So adding Time Warner to the mix would just make them huge, it will give a huge variety and the consumer whoever starts subscribing to the Amazon, they would be absolutely winning for sure.”
Frazier said that she has the habit of binge watching all the TV series through streaming and not through television. This habit has become quite popular among the younger demographics and indicates that the television is slowly but surely getting changed dramatically.