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September 27, 2006

Time Warner Gets Good Price For AOL Germany

Investors have responded favorably to the nice price that Time Warner (TWX) received for its AOL access business in Germany. Citigroup is projecting total proceeds of $2 billion once all of the European access business is sold in the next few months. I consider that a good price, better than I expected, and enough to continue recent momentum in TWX shares.

One negative to watch for is falling estimates and potential write-offs following a horrible summer for Warner Brothers feature films. This will cut into 2006 and estimates. For now, though the trend for TWX seems upward as several analysts upgraded the shares and are looking out to 2007 and 2008.

Posted by Steve Birenberg at September 27, 2006 09:30 AM in TWX