Hasta La Creative!

Time Warner and CBS have flirted for years. A marriage now may make more sense than ever.

Buying the most-watched broadcast network would give Time Warner, owner of cable channels such as CNN and TNT, more negotiating leverage to win higher fees from pay-TV systems that carry its programming. And CBS shares, although they are trading near the highest price since the company and Viacom split seven years ago, fetch the lowest valuation compared to earnings out of the six comparable U.S. companies, according to Bloomberg.

A merger “makes a lot of sense,” Michael Morris, an analyst at Davenport & Co., said in an interview. “With the amount of collaboration they do, investors see it as a possibility as well.”

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