Tomahawk, WI 07/30/2014 (Basicsmedia) – Sir Martin Sorrell, the CEO and founder of WPP, spoke with CNBC about Twenty-First Century Fox Inc (NASDAQ:FOXA)’s planned acquisition of Time Warner (NYSE:TWX). Rupert Murdoch, the media mogul and billionaire owner of Twenty-First Century Fox, is pushing to combine the two legacy media companies and has offered nearly $75 billion to seal the deal. Regulators are weighing in on the matter.
First and foremost, Sorrell supports the merger of the two media companies, and he provided reasons for his take on the deal. From a consumer point of view, he said consumers will enjoy global media view at a time when most media companies today tend to be focused on serving small markets, mostly national audience, yet there are overwhelming opportunities in the global market.
“There is really no media company that has a global view. Rupert has always been one of – if not the only media mogul or magnet that has taken that world view and I think the alliance with Time Warner will be even more effective.”
In saying that Sorrell asserts that Murdoch’s global view will leverage successfully in the international media operation.
Sorrell went on to say that the combination of Twenty-First Century Fox Inc (NASDAQ:FOXA) and Time Warner will be an important move in taking on the likes of Facebook Inc (NASDAQ:FB) and Google Inc (NASDAQ:GOOG), which although are thought of as technology companies are actually media companies. Sorrell believes that the merger of Twenty-First Century Fox Inc (NASDAQ:FOXA) and Time Warner is an anti-Facebook and Google move.
“Before the news came out about the rebuffed offer, there was some chatter about if Google Inc (NASDAQ:GOOG) was looking for Time Warner,” recalled Sorrell.
In terms of combining major legacy media assets and using the same to develop content and distribution, Sorrell said the planned merger between Twenty-First Century Fox Inc (NASDAQ:FOXA) will deliver many opportunities for the legacy companies.
“There are always content opportunities; there is obviously defensive quality to it,” he noted.