Lachapelle: Don't Be Surprised If Fox-Time Warner M&A 'Comes True'

Bloomberg is now reporting speculation that Twenty-First Century Fox Inc FOXA might make a new bid for Time Warner Inc (NYSE: TWX), a story that was reported last week on Benzinga.

About a year-and-a-half ago, Time Warner CEO Jeff Bewkes rejected an $85/share buyout offer from Fox, but Bloomberg columnist Tara Lachapelle believes that the potential deal still makes sense.

TV content providers are under attack by a wave of new digital content providers like Netflix, Inc. NFLX, and consolidation on the cable side of the business has already exploded, including with headline merger deals by Charter Communications, Inc. CHTR/Time Warner Cable Inc TWC and AT&T Inc. T/DIRECTV.

Related Link: EXCLUSIVE: 21st Century Fox Rekindles Bid For Time Warner At $105/Share; Company Denies M&A

Last week, a source familiar with the matter told Benzinga that Fox is still interested in Time Warner, but a representative from Twenty-First Century Fox called the report “categorically untrue.”

However, the market seems to believe that Fox is simply trying not to tip its hand on a potential deal at this point, as shares of Time Warner are already up 10.5 percent so far in a horrendous 2016 market.

Disclosure: the author holds no position in the stocks mentioned.