Fox pulls its proposal to buy Times Warner
RUPERT Murdoch’s 21st Century Fox today announced that it had withdrawn its proposal to acquire Time Warner.
Last month, Fox offered to buy Time Warner for about $80bn (£47bn), or about $85 per share, in a mix of cash and stock.
However, Murdoch 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.”
He noted that “Time Warner management and its board refused to engage with us to explore an offer which was highly compelling”.
Murdoch said that the fall in Fox’s share price since the proposal had undervalued “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.”