Friday, November 11, 2005

TWX's possible effect on GOOG

AOL (Internet for idiots) is still being considered by Microsoft and Google. But Microsoft main point in acquiring AOL, or at least sections of it is not to advance themselves but to hinder Google. AOL is going to be passed around like the little pawn it is in the face off between these giants.

As Chris Pirillo Puts it
"Were Google to acquire AOL, they'd start wiping the walls with the competition (as if they weren't doing so already). Google needs AOL 1/10th as much as MSN does. "

This makes me think Microsoft will put their huge amount of cash on hand to use and possible fork out the value of AOL times 2 to acquire it. This will most likely hurt MSFT in the short term, since buyers normally go down, and may hurt GOOG temporarily considering the slightly reduced revenue stream. So who will benefit? Time Warner!

although I do own 100 shares of Time Warner I do plan on getting rid of them when they manage to get somewhere above $18 (I've been getting impatient with the stock and think my money has more growth potential elsewhere). But for those with patience TWX still definitely has some potential behind it. GOOG will see a hit if it loses to MS giving a good buying opportunity, and MSFT is cheap right now.

I am not responsible for your trade decisions made or not made because of my opinion shared here. You should always do your own research before buying/selling a stock.

1 Comments:

At 1:16 PM, Blogger Salbert said...

I remember that Jim Cramer saying something about TWX going to $22. I know next to nothing about media companies, but if TV advertising is as good as online advertising, then TWX could see some upside.

 

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