Wall Street analysts may be underestimating the value of
Two prominent media analysts -- Marci Ryvicker of Wells Fargo and Kannan Venkateshwar of Barclays -- have both put CNN's value around $4.3 billion. That is an adjusted for taxes. Pre-tax value is in the $6-billion to $7-billion range.
That is low, according to current and former senior executives at Time Warner Inc., who declined to speak publicly on the matter because of the 21st Century Fox situation. One former executive put CNN's worth at between $8 billion to $12 billion. A company insider said $8 billion to $10 billion was in the ballpark.
While CNN's ratings are down in the United States and it is still struggling to find a programming strategy, it is still very profitable and attracts premium advertisers. As important is CNN International, which is in more than 200 countries and is very successful. CNN's online operations are also solid.
The CNN unit also includes