If Rupert Murdoch succeeds in buying Time Warner Inc and CNN is put up for sale, the 24-hour cable news network could be worth $5 billion, according to one analyst's estimate. Gabelli & Co's Brett Harriss said CNN is worth about 11 times annual estimated earnings before interest, taxes, depreciation and amortization (EBITDA) of $450 million.He based the valuation on recent media deals such as Discovery Communications Inc's purchase of a controlling interest in Eurosport International and AMC Networks Inc's acquisition of Chellomedia. Both transactions were valued at 10.5 times to 11 times EBITDA, Harriss said.Murdoch's Twenty-First Century Fox Inc said on Wednesday it made an offer to purchase Time Warner for about $80 billion. Fox has indicated it would sell Time Warner's CNN, a direct competitor of Fox News, to clear any regulatory hurdles, according to people familiar with the situation.While Time Warner rebuffed Fox's offer, the 83-year-old Murdoch is unlikely to abandon his pursuit, the sources said.
Twenty-First Century Fox, Inc., formerly News Corporation, is a diversified global media and entertainment company with operations in cable network programming; television; filmed entertainment; direct broadcast satellite television, and other, corporate and eliminations. Shares of FOXA fell by 6.22% or $-2.19/share to $33.00. In the past year, the shares have traded as low as $29.42 and as high as $36.43. On average, 11370100 shares of FOXA exchange hands on a given day and today's volume is recorded at 89284704.
Time Warner Inc. (Time Warner) is a media and entertainment company. Shares of TWX traded higher by 17.07% or $12.12/share to $83.13. In the past year, the shares have traded as low as $57.59 and as high as $73.07. On average, 5628170 shares of TWX exchange hands on a given day and today's volume is recorded at 69742592.
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