Time Warner Inc.TWX

Morningstar Rating

Stock Research and Analysis

by Michael Corty, CFA

With the spin-off of AOL, we're more optimistic about Time Warner's overall growth prospects. Because we expect healthy free cash-flow generation during the next five years, we think capital allocation is important to shareholder returns.

We believe Read more

Bulls Say

For seven consecutive years, more primetime households have watched advertising-supported cable TV networks than the national broadcast networks. Time Warner's networks are benefiting from this trend.

The company's well-established cable networks have affiliate-fee agreements locked in for several years with pay-television distributors.

While making movies is a hit-or-miss business, Time Warner's huge library of films reduces this volatility and generates loads of cash flow. Read more

Bears Say

Time Warner has made many missteps over the years, including the single-worst acquisition in history. Its shareholders have often been burned during the last decade.

As a creator and distributor of media content, Time Warner could see results suffer if digital piracy cannot be contained.

The company's film business is going through a transition from DVD sales to digital distribution. This creates uncertainty about how the firm will monetize its filmed entertainment assets in future years. Read more

Strategy

Time Warner has slimmed down with the recent spin-offs of Time Warner Cable and AOL. This will allow the company to focus on its core content businesses: the cable networks, filmed entertainment, and Read more

Management

Jeffrey Bewkes took the reins as CEO in January 2008 and became chairman a year later. We frown upon the chairman and CEO titles being held by the same person. Bewkes has a long history with the company, having served as chairman of Time Warner's entertainment Read more

Profile

Time Warner owns several television networks, including HBO, CNN, TNT, and the CW. Warner Bros. and New Line Cinema combine to form the largest film maker in the world. Read more

First Name

Last Name

Email Address

Zip Code

Create Password

Verify Password

(6-15 characters; case sensitive)

What is your occupation or job title?

Select...

Your registration indicates agreement to the terms of use.

Weekly Market Wrap: 2/5/2010
Watch more