EPS
join:2008-02-13
Hingham, MA
| reply to tiger72
Re: name change
It's about stock price- Time Warner right now trades a multiple to its earnings typical of cable companies, while "pure-play" content producers (Viacom, CBS, etc.) who don't have cable arms tend to trade at higher multiples- the idea is that TWC, despite providing a boatload of revenue for TWX, is actually holding the stock price down, reducing the overall value of the company. |
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jc100
join:2002-04-10 | reply to BosstonesOwn
Very well said. Your friend forgot the part about the 100 million severance package for the CEO or EXEC who railroads the company into financial debt, but expects a big payday for leaving. That's the crucial part of the ENTIRE equation. |
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BosstonesOwn
join:2002-12-15
Everett, MA
clubs:
 ·Comcast
| reply to tiger72
Tax purposes and for investors.
The spin off TWC to its own entity. Use it as an income for TW parent company. TWC pays less taxes and TW parent pays less taxes.
When it comes to investors , people don't want to invest in a company that is a dog , right now TW and AOL are not doing so well. If they use TWC as income on the shares for TW parent they both look good. The parent looks like a good investment because TWC pads their bottom line and TWC looks good to investors , because it's profits.
It's all a shell game to fool people into investing more money into a company and to decrease the amount of taxes they pay by using loop holes.
Like one of my friends recently said:
"the disease in this corporate world is the lack of real innovation and real new ideas , while being driven cruelly by stock holders with short term goals.
if your boss can't come up with new ideas or allow his employee new idea to develop then the only thing left to do is reduce expenses , cut corners , make a quick bonus ,
and jump to another company when it gets sour."
See a pattern ?
--
"It's always funny until someone gets hurt......and then it's absolutely friggin' hysterical!" |
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tiger72
SexaT duorP
Premium
join:2001-03-28
Saint Louis, MO
clubs: | reply to patcat88
I doubt it. I still don't understand the rationale behind this, considering TWC makes boatloads of money for TimeWarner. |
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