Time Warner has a new head of Investor Relations: Douglas Shapiro, a former media analyst at Bank of America. Make no mistake: investor relations is a sales business, not a service business, so it’s not surprising that Shapiro had a screaming “BUY” and $25 target on the stock. (Tim Arango in NYT)
More important: Shapiro also advocated that Time Warner be chopped up into pieces, a strategy that some suspect new CEO Jeff Bewkes also favours. So Shapiro’s selection is probably an indication that Time Warner secretly plans to dis-aggregate.
If you disagreed with a break-up strategy, would you hire Shapiro? And who better to sell such a strategy to Wall Street than an analyst who was recommending it?
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