I have to admit it’s due in large part to my love for movies that I have paid particular attention to the happenings at Time-Warner. And hence I am not sure that the upcoming proxy contest featuring Carl Icahn will prove beneficial to shareholders and the movie-watching public.
Icahn certainly appears to be gaining some momentum with a backing by former Viacom chief Frank Biondi. As the New York Times report, Time-Warner has recently announced that it would speed up the pace of its $12.5 million stock repurchase plan, repurchasing some $1.4 million in stock each month for the next three months—just in time for the annual shareholders meeting in May. Of course, an aggressive repurchase plan is precisely what Icahn requested that Time-Warner implement when he began his proxy battle. But the timing of the increased buyback begs the question. Is this an effort to boost earnings and signal confidence in the value of Time-Warner stock or an attempt to undermine the upcoming proxy battle? Fortunately for Time-Warner’s management, the stepped-up repurchases might achieve both results.
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