Breaking Finance News

BREAKING- Piper Jaffray Believes CBS Will See Big EPS Gain from Time Warner Deal (CBS, TWC)

In a note to clients Tuesday, Piper Jaffray said it expects CBS (NYSE: CBS) to reach a deal with Time Warner Cable (NYSE: TWC) which will boost its EPS by 40 to 50 cents and enable affiliates to receive higher fees from cable companies.

The note also said that it expects CBS to benefit from higher revenue from digital streaming. It kept an Overweight rating on the shares.

CBS and Time Warner Cable have been locked in a negotiation over distribution fees. CBS believes that Time Warner wants to pay it less than other providers while Time Warner claims that CBS wants higher rates in large markets like New York and Los Angeles where it owns the affiliates.

Read our coverage on the story here.

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Disclosure: At the time of this writing, the author had no position in the company mentioned.

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