Though rejected, a surprise bid by Rupert Murdoch’s Fox for entertainment rival Time Warner underscores that large media companies are in the mood for major consolidation.
Time Warner Inc., which owns the Warner Bros. movie studio and TV networks including TNT, TBS and HBO, said Wednesday that it rejected the deal and had no interest in further discussions.
Twenty-First Century Fox Inc., which owns the 20th Century Fox movie studio, Fox broadcast network, and TV channels Fox News and FX, confirmed last month’s takeover bid but said the two companies are not in talks.
The cash-and-stock offer, worth about $76 billion, comes on the heels of cable giant Comcast Corp.’s proposed $45 billion takeover of Time Warner Cable Inc. that was made in February and is undergoing review.
Media are going through a seismic change as more and more people watch entertainment online via Netflix, Hulu and services such as HBO Go, which Time Warner owns. Distributors and content producers have been struggling to adjust.
$166 million contract for sonobuoys OK’d
ERAPSCO has been awarded a $166 million contract for 141,263 sonobuoys and 5,000 underwater sound devices.
Work on the contract will be performed in Columbia City and DeLeon Springs, Florida, with slightly more assigned to Florida. Production is expected to be completed in October 2019.
The Naval Air Systems Command, Patuxent River, Maryland, awarded the contract.
ERAPSCO’s bid was the only one received.
iAB Financial logs 77% earnings gain
Independent Alliance Banks Inc. on Wednesday reported second-quarter earnings of $2.2 million, or 54 cents a common share, a 77 percent jump from the $1.2 million, or 30 cents a share, posted for the same period last year.
The holding company for iAB Financial Bank attributed its profit boost to the bank recovering two bad loans and being able to set aside a more normal amount for problem loans.
The company experienced a 59 percent decline – or $10 million drop – in nonperforming loans during the quarter that ended June 30.
Mike Marhenke, president and CEO of iAB, said the Fort Wayne company returned to normal earnings levels during the quarter.
We greatly improved our asset quality position, and we look forward to a strong finish to the year, he said in a statement.
PNC sees profit fall 5.1 percent
PNC Financial Services Group Inc. on Wednesday reported net income that dropped by 5.1 percent in its second quarter but topped analysts’ expectations.
The Pittsburgh-based bank said net income after dividends on preferred stock fell to $995 million, or $1.85 a share, from $1.05 billion, or $1.98 a share, in the same quarter a year earlier. The average estimate of analysts surveyed by Zacks Investment Research was for earnings of $1.77 a share.
The company said revenue decreased 6.3 percent to $3.81 billion from $4.06 billion in the same quarter a year earlier. Wall Street analysts had expected $3.76 billion.
PNC Financial Services shares have risen $10.66, or 14 percent, to $88.24 since the beginning of the year.