Rupert Murdoch withdraws $80 billion bid to take over Time Warner
Fox had made an unsolicited bid to Warner one month ago but Warner countered the bid saying it undervalued the company. Fox said Warner was refusing to ‘engage with them’ and that it would buy back $6 billion of its own shares, according to media reports
Rupert Murdoch has decided to do away with his bid to take over Time Warner.
According to media reports, the company announced that it is withdrawing the $80 billion bid on the grounds that Time Warner ‘refused to engage with them.’ Fox also announced that it will buy back &6 billion of its own shares and this announcement came a day before it released its quarterly results.
“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,” said Murdoch in a statement published by various media reports.
“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.”
He said 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,” he further said.
He said 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.”
According to reports, Fox made its unsolicited bid to Time Warner last month. The offer was rejected by Time Warner CEO Jeff Bewkes saying it undervalued the company, whose assets include HBO, the Warner movie studio and CNN.
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