On today's episode of Free Lunch, Associate Stock Strategist Ryan McQueeney discusses the AT&T-Time Warner merger in the immediate aftermath of a federal judge's decision to approve the deal. Ryan also explains why this will affect ongoing talks between Disney, Comcast, and Fox. Later, the host takes a closer look at Netflix after the video streaming company received its most bullish analyst call to date.
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The telecom and media industries are buzzing today after a federal judge approved AT&T's T monumental $85 billion merger with Time Warner TWX . The cellular and broadband network behemoth will now be able to leverage its distribution infrastructure with Time Warner's deep library of original content, including HBO, Warner Bros., and Turner Broadcasting.
Ryan explains why this new positioning is a strategic advantage for AT&T in today's evolving media and entertainment world.
The deal will also have ramifications for others looking to make major M&A moves in this space-especially Disney DIS , Comcast CMCSA , and 21 st Century Fox FOXA . Disney has already made its bid for certain Fox assets, but since this merger has been approved, many believe Comcast will make a counteroffer soon. Ryan explains why the stakes are so high for these companies right now.
Finally, Ryan takes a closer look at Netflix NFLX , another company that will be affected by the AT&T-Time Warner deal. But Netflix was trending this morning after Goldman Sachs slapped an incredibly bullish price target on the stock, suggesting that its original content initiatives have pathed the way for a successful future.
Ryan discusses this bullish analyst call and launches into a conversation about Netflix's valuation history, price performance, earnings estimate trends, and margin improvements. Make sure to check out the show to hear more!
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Time Warner Inc. (TWX): Free Stock Analysis Report
The Walt Disney Company (DIS): Free Stock Analysis Report
Netflix, Inc. (NFLX): Free Stock Analysis Report
AT&T Inc. (T): Free Stock Analysis Report
Comcast Corporation (CMCSA): Free Stock Analysis Report
Twenty-First Century Fox, Inc. (FOXA): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
