Barclays examined the possibility of a tie-up between Time Warner Inc (NYSE: TWX) and AT&T Inc. (NYSE: T) following the reports of a potential merger between CBS Corporation
(NYSE: CBS) and Viacom, Inc. (NYSE: VIAB).
Aside from that, Walt Disney Co (NYSE: DIS)
was rumored to have shown interest in Twitter Inc (NYSE: TWTR), triggering wide-spread consolidation chatter in the cable, media and telecom
sectors.
Related Link: Sell-Side
Sentiment On Twitter Following Buyout Chatter Has Not Been Positive
Barclays Take
Analysts Kannan Venkateshwar and Amir Rozwandowski see any possible integration between Time Warner and AT&T could provide
industry scale immediately. They pointed out that the management admitted economic severity contributing higher value proposition
in offering differentiated content to the market.
In a research note, the brokerage said, "While we currently believe the carrier has its plate full (i.e. DTV/Mexico integration,
OTT launch, etc.), over time we could see the value proposition provided by moving into the content arena."
Barclays does not expect any incremental financial gains from the speculated combination of Time Warner and AT&T, although
speculations are rife on the industrial logic that is similar to Comcast Corporation (NASDAQ: CMCSA)–NBCU in hindsight.
Therefore, the brokerage found it tough to see any favorable financial gains on a standalone basis. As such, there should be
some competitive necessities and revenue synergies pointing out that gains would not like to accrue immediately.
At Time Of Writing ...
- AT&T closed down 0.29 percent at $40.73.
- CBS closed up 0.78 percent at $54.57.
- Comcast closed down 0.64 percent at $66.25.
- Disney closed down 0.43 percent at $91.80.
- Time Warner closed up 0.06 percent at $78.61.
- Twitter closed up 0.22 percent at $23.01.
- Viacom closed up 3.31 percent at $37.77.
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Latest Ratings for CBS
Date |
Firm |
Action |
From |
To |
Sep 2016 |
Telsey Advisory Group |
Downgrades |
Outperform |
Market Perform |
Sep 2016 |
Drexel Hamilton |
Initiates Coverage on |
|
Buy |
Jul 2016 |
Deutsche Bank |
Maintains |
|
Buy |
View More Analyst Ratings for
CBS
View the Latest Analyst Ratings
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