21st Century Fox has withdrawn its bid to buy rival Time Warner. Fox Chairman Rupert Murdoch had pitched the deal last month. However, Time Warner had rejected the bid. The deal would have been the largest media merger since the disastrous AOL purchase of Time Warner for $162 billion in 2000. Time Warner’s reluctance to […]
21st Century Fox has withdrawn its bid to buy rival Time Warner. Fox Chairman Rupert Murdoch had pitched the deal last month. However, Time Warner had rejected the bid. The deal would have been the largest media merger since the disastrous AOL purchase of Time Warner for $162 billion in 2000.
Time Warner’s reluctance to negotiate and Fox’s falling stock price were factors in Fox’s decision to withdraw the offer.
The proposed deal “had significant strategic merit and compelling financial rationale,” and was intended as friendly bid, Murdoch said in a statement.
“However, Time Warner management and its board refused to engage with us to explore an offer which was highly compelling. The reaction in our share price since our proposal was made undervalues our stock and makes the transaction unattractive to Fox shareholders.”
“This significant return of capital underscores the company’s ongoing commitment to disciplined capital allocation and returning value to shareholders in a meaningful way,” the Murdoch statement said.
In responding to Fox’s decision, Time Warner said in a statement that it “is well positioned for success with its iconic assets.”
