Rupert Murdoch's 21st Century Fox withdraws $75 billion bid for Time Warner
Time Warner shares fell 9% after the announcement was made
Tuesday 05 August 2014
Rupert Murdoch’s 21st Century Fox has withdrawn its $75 billion proposal to buy Time Warner because the rival company “refused to engage with us.”
“We viewed a combination with Time Warner as a unique opportunity to bring together two great companies, each with celebrated content and brands,” said Murdoch.
“Our proposal had significant strategic merit and compelling financial rationale and our approach had always been friendly. However, Time Warner management and its board refused to engage with us to explore an offer which was highly compelling.”
Murdoch added that a fall in 21st Century Fox’s share price since its cash-and-stock takeover proposal for Time Warner was confirmed last month undervalued Fox stock and made the transaction unattractive to Fox shareholders.
“These factors, coupled with our commitment to be both disciplined in our approach to the combination and focused on delivering value for the Fox shareholders, has led us to withdraw our offer.”
21st Century Fox shares jumped around 7 per cent in after hours trading today after the news that Murdoch had dropped the bid, while Time Warner shares fell 9 per cent.
Both companies report earnings today, when investors and analysts will be able to grill both firms’ executives.
Brett Harriss, analyst with Gabelli & Co, a fund management firm with expertise in the media, told Reuters he did not believe this would be the end of the Time Warner-21st Century Fox merger speculation.
“This could easily be part of their negotiating strategy,” he said, adding that Time Warner’s management could be placed under pressure for not negotiating a better offer for shareholders.
21st Century Fox also said it now plans to buy back $6 billion of its stock.
- 4 #JeSuisEd: People share photos of themselves eating awkwardly in solidarity with Labour leader
- 5 Women think Irish men are the sexiest, survey finds
Italian police 'reveal' what Jesus looked like as a young boy
Mysterious 'X-Files' sounds heard miles above the Earth
Florida couple forced to register as sex offenders for having sex on public beach
Who should I vote for in the general election? Take The Independent's interactive quiz to find out which party is the right choice for you
General election: Conservatives mocked online over Boris Johnson's claim of SNP 'jockalypse'
In defence of liberal democracy
General Election 2015: Post-election 'shambles' looms as 70 per cent of voters say SNP 'should not be able to veto UK government policies'
The Rothschild Libel: Why has it taken 200 years for an anti-Semitic slur that emerged from the Battle of Waterloo to be dismissed?
General Election 2015: UK will be 'run for the wealthy and powerful' if Tories retain power, Labour warns
General election live: SNP suspends two members for disrupting Labour rally
General Election 2015: Sturgeon claims Scots 'appalled' by Ed Miliband's refusal to work with SNP
iJobs Money & Business
£60000 - £70000 per annum + benefits : Ashdown Group: A highly successful, glo...
£25000 - £30000 per annum + benefits: Ashdown Group: A global leader operating...
£27 - 35k + Bonus + Benefits: Guru Careers: A Management Accountant is needed ...
£40-50k + Benefits.: Guru Careers: A Project Manager / Business Analyst is nee...