Posted: 11:55 p.m. MT Nov. 1, 2007
Google Bids for Time Warner at $60 Billion
Palo Alto, CA - Time Warner Inc. (TWX) received a hostile takeover bid from Google Inc. (GOOG) today. After speaking with Industry Analysis Paul Kim, the extreme nature of this takeover is explained. According to Kim, Google has offered $60 billion in debt, cash, and stocks. The debt is measured at $5 billion, the cash at $10 billion, and the stock at $45 billion. The cash, he says, is an added bonus. CEO of Time Warner, Richard D. Parsons, says that they will do their analysis which may take a month.
Dr. Eric Schmidt CEO and Chair of Google, said, "We saw the need to add content production to our company quickly. They are one of the biggest content producers; we are one of the biggest content distributors. Merge content production with content distribution. It make good sense to us." He also commented that this takeover has been under consideration for under six months.
Our industry analyst says, "I don't know why Time-Warner would turn it down." There was comment on the future of the company and the Federal Communications Commission. The size of this could be company may create a sting with the officials at the FCC. Large conglomerates tend to create controversy because of convergence of media.
Terry Semel, CEO and Chair of Yahoo (YHOO), Steve Balmer, CEO of Microsoft (MSFT), and William Gates, Chair of Microsoft, all offered no comment.
1 comment:
Ok the part where you had the industry anyalisis thingy!! Excellent, gave pointers to the reader, having your very own expert!!Nice job!
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