Murdoch ends $80bn Time Warner bid, plans $6bn share buyback
Rupert Murdoch has ended his $80bn bid for Time Warner after it refused to engage with 21st Century Fox over the proposed deal.
It ends considerable speculation over a deal which would have created a giant in the American media landscape.
21st Century Fox will instead buy back $6bn of its shares over the next 12 months.
Murdoch said of the latest development:
“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.
“21st Century Fox’s future has never been brighter. The strength of our leading franchises, combined with the power of our emerging growth businesses and the leadership positions of our international enterprises put us on a path for even greater success.”
Details of the bid to acquire the rival entertainment company leaked in July, but it was rebuffed by Time Warner as not in the interests of shareholders.
However, the withdrawal of its bid is unlikely to put to rest completely the mounting speculation that Murdoch would up his multi-billion dollar bid following the sell off of 21st Century Fox’s interests in Sky Deutschland and Sky Italia.