Thomas Weisel analyst Gordon Hodge has come out with a very detailed tome on Time Warner, spelling out the bullish case. The basic premise is something others have been saying for a while now: that the company’s current value doesn’t adequately reflect the value of its various units, particularly its cable unit and AOL (NYSE: TWX). Things you’ve read and heard before.
An interesting part of the report is Hodge’s analysis of Time Inc’s revenues and digital potential (bullish again). Ann Moore, the CEO of Time Inc, told me Friday in NYC that the estimates in this report are closest she has seen (TWX doesn’t break out digital revenues separately in its financial reports), so we will take her word for it.
Hodge writes that growth in online revenues combined with cost cutting is offsetting declines in the print business. The company