Morningstar Rating

Stock Research and Analysis

by Michael Corty, CFA

Bulls Say

Telecom companies are aggressively competing for video customers with cable and satellite TV providers. This adds a third bidder for Time Warner's cable networks.
For the 2012-13 TV broadcast season, Warner Bros. placed the most series on the broadcast schedule once again. Not having an affiliation with a broadcast network allows Time Warner to maximize its shows by having multiple bidders.
Time Warner has a strong international presence with region-specific versions and local language feeds of Turner Classic Movies, TNT, and other entertainment networks in approximately 180 countries. Read more 

Bears Say

The company's publishing business lacks an economic moat. There is a secular shift of printed content moving online. Time Warner has not discovered a long-term solution to monetizing its content outside its print product.
Increases in the cost of popular programming such as sports events and television series could adversely affect margins in the cable network business.
The shift of viewers away from network television to other entertainment outlets could reduce the demand for scripted programming from Warner Bros.' television studio. Read more 

Management

We look favorably upon the current management team. We classify Time Warner's stewardship of shareholder capital as Standard, but we'd put this management team on the upper end of the scale among its direct peers. Jeff Bewkes took the reins as CEO in   Read more 

Profile

Time Warner owns several television networks, including HBO, CNN, TNT, and the CW. The filmed entertainment segment creates and distributes movies and television programming.  Read more 

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