Time Warner reported a good 3Q09, beating expectations on most key metrics. EPS of 45 cents exceeded the consensus estimate of 37 cents. Revenues of $6.81 billion fell slightly short of consensus for $6.97. EBITDA was down just 2%, far ahead of expectations for a drop of 11-14%. The upside came in Networks and Filmed […]
I have been strongly in favor of a separation of AOL from Time Warner (TWX) for several years. I am not convinced there is much hidden value in AOL but getting rid of a management distraction and significant negative talking point for investors should be helpful to TWX’s stock valuation. In addition, AOL is has […]
I sold all client and personal positions in Time Warner (TWX) on Thursday morning. The shares had rallied 39% since re-opening for trading following the completion of the spin-off from Time Warner Cable (TWC) on March 27th. Most of the TWX owned by Northlake was purchased in August 2008. Adjusted for the split from TWC, […]
Time Warner (TWX) reported better than expected 1Q09 results. Headline financial numbers of 35 cents, $6.95 billion in revenue, and $1.56 billion in EBITDA each exceeded estimates. On its own, the financial performance would have been enough to push the stock higher. However, news that an AOL spin has moved to the front burner added […]
Time Warner (TWX) reports its first quarter since completion of its restructuring on Wednesday morning. The company no longer owns cable systems and is not a content focused company with greater than 2/3rds of operating income coming from film and TV production and cable networks. Consensus estimates call for EPS of 38 cents, revenue of […]
The WSJ is reporting that TWX has asked bondholders for consent to amend covenants. The amendments essentially switch collateral on the bonds from AOL to HBO. The idea is to set up AOL for a spin-off as a debt-free company. I’ve written often on TWX noting that any divestiture of AOL will be positive for […]
I sold all the shares clients received last week in Time Warner Cable (TWC) as a dividend from Time Warner (TWX). For each share of TWX owned prior to the 1 for 3 reverse split, clients received .03867 shares of TWC. For the long-term, I think the market is undervaluing cable stocks but I fear […]
Time Warner (TWX) has hired one of Google’s most senior executives to run AOL. Tim Armstrong was a member of Google’s Operating Committee and President of Americas Operations. Armstrong also has a background in traditional media including developing internet properties at traditional media companies. Armstrong is undoubtedly totally loaded due to his 8 plus years […]
The Weekend box office continued its year long win streak but for the second consecutive weekend there was a disappointment from a highly anticipated film. Led by Watchmen, the box office rose 12.7% according to BoxOfficeMojo.com. Every weekend since late December is positive and year-to-date total receipts for the North American box office are up […]
Back in late November when Time Warner was trading just over $9, I wrote a column for Real Money explaining Why You Should Own the shares. Today the stock stands at $7.56, down about 16%, a bit worse than the S&P 500 which is down almost 13%. During this time, Disney (DIS) and News Corporation […]
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