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Gabelli sees Fox, Time Warner nearly doubling

Gabelli 'neutral' on Fox/Time Warner deal

There's a slim chance that Rupert Murdoch's move to drop Twenty-First Century Fox's $80 billion bid for Time Warner could be a negotiating ploy, said Mario Gabelli, chairman and CEO of Gamco Investors, which owns stakes in both companies.

On the Twenty-First Century Fox earnings call Wednesday afternoon, Murdoch emphasized his "resolute decision" to walk away from his Time Warner bid, while COO Chase Carey told analysts and investors that Fox is "done" with its pursuit of Time Warner and has no plans to seek deals with other content companies.

Read MoreTime Warner's new burden after Murdoch

While "neutral" on the potential deal, Gabelli did say Thursday on "Squawk Box " that he expects to continue to benefit from owning Fox and Time Warner. "Both these companies will do extraordinarily well over the next five years. … I think you'll see $130 [a share] in Time Warner in five years. You'll see a $65 stock in Fox in five years."

Fox closed Wednesday at $32.33 a share, while Time Warner finished at $74.24 a share.

Gamco Investors has a total of $45 billion in assets under management.

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