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A look at Time Warner and Twenty-First Century Fox

By WTOP Staff

JOE PISANI
AP Business Writer

NEW YORK (AP) — Combining Time Warner and Fox would result in one media and entertainment juggernaut, bringing together such TV channels as HBO and Fox News Channel and two major production companies whose franchises include “Batman,” ”Harry Potter” and “Avatar.”

Although Time Warner Inc. said Wednesday that it rejected last month’s takeover bid from Twenty-First Century Fox Inc., a person familiar with the matter said that Fox Chairman and CEO Rupert Murdoch is determined, but disciplined, in continuing to pursue a deal. The person wasn’t authorized to speak publicly and spoke on condition of anonymity.

Both companies have been focusing on their TV and movie units by shedding other businesses.

Last summer, Fox split from News Corp., which kept the newspaper and book publishing businesses.

Last month, Time Warner spun off magazine publishing company Time Inc. And in 2009, it spun off Internet company AOL Inc. and cable access provider Time Warner Cable Inc. into two separate companies. Years earlier, Time Warner shed its recording label, Warner Music Group.

Time Warner Inc. grew out of a merger of Time Inc. and Warner Communications in 1990. It acquired Ted Turner’s Turner Broadcasting System in 1996. In turn, America Online Inc. acquired Time Warner in 2001, only to be spun off after CEO Jeff Bewkes called it “the biggest mistake in corporate history.”

Fox’s rejected cash-and-stock offer was worth about $86.30 per Time Warner share, based on Tuesday’s closing price. That represents a 22 percent premium. Analysts believe Murdoch could afford to raise the bid to more than $100 by borrowing more money.

Time Warner is more vulnerable to a takeover because it has a single class of shares, so major shareholders might find it attractive even if the board doesn’t. By contrast, Fox has a dual-class structure, allowing the Murdoch family to maintain control with its nearly 40 percent of voting shares.

Of course, Murdoch hasn’t always gotten what he wants. He had to give up his bid for DirecTV in 2008 after Liberty Media Corp. chairman John Malone outmaneuvered him by taking a threateningly large stake in News Corp. and the two ended up swapping shares. He also withdrew a bid to boost News Corp.’s stake in British Sky Broadcasting Group PLC in 2011 amid outrage over a phone hacking scandal at News Corp.’s British newspapers.

If Time Warner and Fox do ultimately combine, it would be as large as Disney in market value.

Here’s a look at some of the assets each company owns and some of the movies and TV shows they have produced:

— TIME WARNER INC.

TV networks: Cartoon Network, CNN, HBO, TBS, TNT

Studios: Warner Bros. Pictures, Telepictures Productions

Movies: “The Lego Movie,” ”Godzilla,” ”Edge of Tomorrow”

TV shows produced: “2 Broke Girls,” ”Arrow,” ”Two and a Half Men,” ”The Vampire Diaries”

Famous characters: Batman, Superman, Bugs Bunny, Harry Potter

— TWENTY-FIRST CENTURY FOX INC.

TV networks: Fox broadcast, Fox News, Fox Sports, FX, YES Network

Studios: Twentieth Century Fox, Blue Sky Studios

Movies: “Dawn of the Planet of the Apes,” ”Ice Age: Continental Drift,” ”Rio 2,” ”X-Men,” ”Avatar.”

TV shows produced: “Modern Family,” ”American Horror Story,” ”Glee,” ”The Simpsons”

___

AP Business Writer Ryan Nakashima in Los Angeles contributed to this report.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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