NEW YORK (TheStreet) -- Shares of Time Warner (TWX) are plunging, down -12.74% to $74.34 in pre-market trading, after Rupert Murdoch's Twenty-First Century Fox (FOXA) yesterday dropped its $80 billion offer to buy the company.
The surprise announcement appears to have cut short what many investors viewed as an inevitable battle over a deal that would have would have joined two of Hollywood's biggest studios and TV networks, Reuters reports.
Still, some investors wondered whether the move could be a shrewd effort to drive down the stock, prompting Murdoch to re-enter the fray later on, Reuters said.
TheStreet Ratings team rates TIME WARNER INC as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate TIME WARNER INC (TWX) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."
Highlights from the analysis by TheStreet Ratings Team goes as follows: