Rupert Murdoch’s 21st Century Fox withdrew its unsolicited takeover offer of $75 billion for Time Warner Inc., giving up after the attempt to reshape the media industry sent Fox shares tumbling.
The surprise announcement appeared to cut short what many investors had viewed as an inevitable battle of attrition over a deal that would have joined two of Hollywood’s biggest studios and TV networks from TNT to Fox News.
Still, some investors wondered whether the move could be a shrewd effort to drive down the stock, prompting Murdoch to re-enter the fray later on.
In a press release Chairman and CEO of Twenty-First Centuary, Rupert Mudroch said, “We viewed a combination with Time Warner as a unique opportunity to bring together two great companies, each with celebrated content and brands. 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. Additionally, the reaction in our share price since our proposal was made undervalues our stock and makes 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.”
Source: http://cablequest.org/news/international-news/item/5642-fox-rolls-back-its-decision-to-acquire-time-warner.html
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