Sign up to receive 5 free days of our daily summary for tech news.

True Value: Uber's Confidential Documents Show Path to $90 Billion IPO. Read the full story here.

Read this article for free.

Already a subscriber? Log in here

Media

As Cable Mergers Loom, Time Warner Should Do This Deal

The rush among media companies to launch over-the-top video services suggests a recognition among old media that the gold mine of cable television is in decline. Less recognized is what that means for the future of the big public entertainment companies, each hugely dependent on cable channel profits.

One answer is consolidation, which typically happens in a declining business as companies endeavor to cut costs as revenues fall. The better answer might be for companies to carve off their cable channels and double down on the part of their businesses that make TV shows and movies, whose value will last.

In that respect, here’s one idea for achieving both: Time Warner could buy Sumner Redstone’s National Amusements, the theater-chain company that owns controlling stakes in both CBS and Viacom.

What Is The Information?

Notes bb3aa5069205d702dda37fc71dc6f1c59df2310c4379304e9f1199f052af4884

Exclusive Articles

We broke it first. Receive original reporting you won't read anywhere else from the largest newsroom in tech.

Notebook b5103017ee163370a1667c9ce59ab0ef023875a17888105d26c185cadf31bb69

Daily news analysis

Every weeknight, we'll send you our reporters’ views on the day’s top tech news—distilled into one email.

Conference calls c9e664e8b96ee347d3e92b8309938f268422b9db98cfabca5c826fbb75054b23

Conference calls

Get access our reporters and other top executives with monthly deep-dive calls into topics like startups and autonomous vehicles.

Events 499acedd16cffc41445edd76bfd302b2836c2a27419890f17130a6b10e2aa3df

Special Events

For no extra fee, get access to more than a dozen events yearly, from intimate dinners to larger gatherings with marquee speakers.

Access the best reporting on the tech industry read by tens of thousands of global executives.

Become a contributor

Share your views and find other subscribers by completing your profile. You’ll be listed in our contributor directory.

Org Charts

Access the only collection of tech company org charts. Our expanding database includes companies like Amazon, Snap, and Uber.

Slack community

Discuss topics and current events with our subscriber-only Slack group and share news about your company with other subscribers.

Share with your team

Subscribers can unlock any article and share it with friends and co-workers through a special share link.

Stay up to date on Silicon Valley

Sign up for Jessica Lessin’s (The Information’s CEO & Founder) free Saturday newsletter and also receive a complimentary week of our daily afternoon tech commentary email.

Already a subscriber? Log in here

Recent Articles

Entertainment Telecom

AT&T’s Time Warner Overhaul Will Spark Employee Exodus

By Tom Dotan and Jessica Toonkel

Entertainment

As CBS Board Eyes Future, Viacom Merger May Arise Again

By Jessica Toonkel

Entertainment

Viacom Looks to Buy Ad-Supported Streaming Service

By Jessica Toonkel and Tom Dotan

Media Entertainment

Katzenberg’s Quibi Faces Quandary: Meeting Ambitious Content Goal

By Beejoli Shah

Fox CEO Rupert Murdoch is fortunate that the Time Warner deal didn’t come through. The resulting overexposure to cable channels could have been disastrous for the combined company long term.