Morningstar Rating

Stock Research and Analysis

by Neil Macker, CFA

Bulls Say

Turner Sports owns valuable rights to sports, including the NBA. These rights give Time Warner leverage in negotiations with pay TV distributors for affiliate fees and with advertisers interested in a live viewing audience.
Warner Bros. has placed shows on every broadcast network. Not having an affiliation with a broadcast network allows Time Warner to maximize value of 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 networks in more than 180 countries. Read more 

Bears Say

If advertisers shift money away from the television toward Internet and mobile marketing, profitability at the cable networks will also fall rapidly because of the high operating leverage of the business model.
Increases in the cost of popular programming such as sports events and television series could adversely affect margins in the cable network business.
Developing mass markets hit programs can be unpredictable, especially as media fragmentation continues. Read more 

Management

We classify Time Warner's stewardship of shareholder capital as standard, but we believe the current management team is at the upper end of the tier of its direct peers. Jeff Bewkes took over as CEO in January 2008 and added the title of chairman a   Read more 

Profile

Time Warner is a pure-play entertainment company that owns several television networks, including HBO, CNN, TNT, and the CW. The filmed entertainment segment creates and   Read more 

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