What’s Mario Gabelli’s View on AT&T-Time Warner Deal?

Mario Gabelli has a positive view on AT&T’s (T) deal with Time Warner (TWX). He said in a recent interview that he owns only AT&T stock. His firm believes the proposed tax reforms could give a huge boost to AT&T’s earnings.

Gabelli also has an optimistic view on Time Warner. He expects that over the next five years, Time Warner could have EBITDA of $50 billion and capex of less than $2 billion. According to him, Time Warner has a very good balance sheet and the deal with AT&T will have a positive impact.

On a year-to-date basis, AT&T stock has fallen nearly 15.3% as of November 22, 2017. On November 22, the stock was trading at $34.87. Its 52-week high is $43.03, and its 52-week low is $32.55. The trailing price-to-earnings multiple of AT&T is 16.39x. The S&P 500 Index (SPY) (SPX-INDEX) (COMP-INDEX) has returned nearly 15.2% on a year-to-date basis as of November 22, 2017.

On a year-to-date basis, Time Warner’s stock price dropped nearly 4.7% as of November 22, 2017. On November 22, 2017, the stock was trading at $90. Its 52-week high is $103.90 and 52-week low is $85.88. Time Warner’s trailing price-to-earnings multiple is 16.70x.

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