Will a New Warner Bros. Be a Catalyst for Time Warner Stock?

Kevin Tsujihara is entering his second year as Warner Bros. CEO. Credit: Warner Bros.

Kevin Tsujihara wants Warner Bros. "making the hard decisions" when it comes to the business of entertainment, according to an interview he gave to The New York Times. Should investors believe the hyperbole? Is it time to take a closer look at Time Warner stock?

Host Ellen Bowman puts these questions to analysts Nathan Alderman and Tim Beyers in this week's episode of 1-Up on Wall Street, The Motley Fool's web show in which we talk about the big-money names behind your favorite movies, toys, video games, comics, and more.

Nathan says he sees nothing to get excited about in Tsujihara's stated plan, noting that Man of Steel was such a departure from the classic Superman myth that he's left wondering if the right people are handling its DC Comics properties.


Meanwhile, the current plans as we know it calls for a 2016 sequel while signs point to a Justice League movie following quickly after that. Nathan says the purported schedule -- while unconfirmed at this point -- would amount to a rush job that sits in stark contrast to the way Walt DIsney and Marvel Studios have taken years to establish the Marvel Cinematic Universe.

Tim notes that while there's reason to question Warner's strategy with DC movies, Tsujihara deserves praise for signing a deal with Harry Potter author J.K. Rowling to produce a series based on her 2001 book, Fantastic Beasts and Where to Find Them. He also braved backlash from theater operators for agreeing to a simultaneous release of Veronica Mars via popular on-demand services.

And in November, Tsujihara convinced DC Comics to move from its historic New York headquarters to Los Angeles in order to be near to Warner Bros.' TV and movie operations. Strong performances for TV adaptations such as Arrow have followed. A similar bump in movie quality and performance isn't out of the question, Tim argues.

Now it's your turn to weigh in using the comments box below. Do you think Tsujihara's moves will be good for Time Warner stock? Why or why not? Please watch the video as Ellen puts Tim and Nathan on the spot, and be sure to check back here often for more 1-Up on Wall Street segments.

3 stocks to own for the rest of your life
Warner may be in transition but some stocks are built to last. Just ask Warren Buffett. The Oracle didn't make billions by betting on half-baked stocks. He isolated his best few ideas, bet big, and rode them to riches, hardly ever selling. You deserve the same. That's why our CEO, legendary investor Tom Gardner, has permitted us to reveal The Motley Fool's 3 Stocks to Own Forever. These picks are free today! Just click here now to find out more about the three companies we think you can buy to hold for a lifetime. 

The article Will a New Warner Bros. Be a Catalyst for Time Warner Stock? originally appeared on Fool.com.

Neither Ellen Bowman nor Nathan Alderman owned shares in any of the companies mentioned in this article at the time of publication. Tim Beyers owned shares of Time Warner and Walt Disney. The Motley Fool recommends and owns shares of Walt Disney. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.


Increase your money and finance knowledge from home

Forex for Beginners

Learn about trading currencies and foreign exchange transactions

View Course »

Basics of Diversification

Learn one of the fundamental concepts of building a portfolio.

View Course »

Add a Comment

*0 / 3000 Character Maximum