Time Warner Inc
"It`s hard to find a more compelling opportunity than Time Warner," said Samantha Greenberg, chief investment officer at New York-based hedge fund Margate Capital at a Reuters event on Tuesday.
The U.S. Department of Justice has sued to block AT&T`s $85.4 billion deal to buy Time Warner, struck more than 15 months ago, on the grounds it would raise prices for consumers and rivals. A trial to decide the matter begins in March.
Time Warner shares are a good investment regardless of the outcome, Greenberg told attendees of Reuters Breakingviews` "No Safe Spaces for Big Media" panel.
"They have been in deal hell and their stock has massively underperformed the S&P 500," Greenberg said. Time Warner trades at about 11.5 times earnings projected for this year, she said, a touch over the sector average.
Even if AT&T does not win its case against the Justice Department, other buyers will likely emerge, including Apple Inc
The panel focused on consolidation in the media sector as programmers and distributors try to prevent viewers cancelling their cable and satellite subscriptions to watch shows on online services provided by Netflix Inc
"Linear TV is in trouble," said James Murray, a partner at PJT partners, a New York-based investment bank.
Walt Disney Co
Just this month, Viacom Inc
Panelists said they expect technology companies such as Apple and Amazon to acquire movie or TV studios this year.
"Technology companies will go for the small pure plays," said Julius Genachowski, partner and managing director at The Carlyle Group.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)