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 (NYSE:TWX.DL) 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 (NYSE:DIS) 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.