Time Warner Inc. (0.3%) (TWX – $152.06 – NYSE), located in New York, New York, is a diversified media company with operations in cable networks through HBO, TNT, TBS & CNN, and film & television production. We like the company’s cable networks, high margins and low capital intensity. We expect the company to use its free cash flow to return capital to shareholders through its $1.27 per share dividend and aggressive share repurchases. Following the $85 per share bid by Twenty-First Century Fox (2.2%), we expect Time Warner could be an acquisition target.
From Mario Gabelli (Trades, Portfolio)’s Asset Fund Q4 2014 Commentary.
