Sir Martin Sorrell, the CEO of WPP, on CNBC, shared his thoughts on the takeover bid from Twenty-First Century Fox Inc (NASDAQ:FOXA) for Time Warner Inc (NYSE:TWX). Sir Sorrell thinks that Time Warner Inc (NYSE:TWX) being bought by Twenty-First Century Fox Inc (NASDAQ:FOXA) is a good thing. His view is that this could be the beginning of new, good things and will provide benefits for the clients.
“There are very few media owners that have a global view. They tend to be US-orientated or Indian-orientated or Chinese-orientated. There is really no media company that has a global overview. Rupert Murdoch has always been the only media Moghul or magnate that has taken that overview. A liaison with Time Warner will be even more effective,” he said.
He went on to describe that this move has both defensive and offensive qualities and that there are content opportunities being made available through this bid. He explained that it had defensive qualities because it was “anti-google and anti-Facebook or the counter to these in terms of combining major legacy media assets and using them to develop content” so as not to lose out to the digital world.
Speaking of the past bids Time Warner Inc (NYSE:TWX) has had, he mentioned that even Google Inc (NASDAQ:GOOGL) was reported to have looked at Time Warner Inc (NYSE:TWX), although it ended being a rebuffed offer.
Sir Sorrell also mentioned alignment between legacy media companies and new media companies, calling Google Inc (NASDAQ:GOOGL), Twitter Inc (NYSE:TWTR), and Facebook Inc (NASDAQ:FB) media companies, and not technology companies.