Categories: BusinessEntertainment

Fox withdraws $80 billion bid to purchase Time Warner

21st Century Fox has withdrawn its bid to purchase entertainment giant Time Warner for an estimated $80 billion.

Time Warner rejected Fox’s initial offer in July.

Rupert Murdoch’s company wrote in a statement that Time Warner had “refused to engage with us to explore an offer which was highly compelling”.

It added that the reaction in the company’s share price since the proposal was unveiled undervalued Fox.

Fox’s share price has declined by 11% since news of the takeover was revealed.

21st Century Fox has withdrawn its bid to purchase Time Warner for an estimated $80 billion

Meanwhile shares in Time Warner plunged more than 11% in after-hours trading after the surprise news of the withdrawal was announced.

“Time Warner’s Board and management team are committed to enhancing long-term value and we look forward to continuing to deliver substantial and sustainable returns for all stockholders,” said Time Warner in a statement.

A merger between the two giants would have significantly altered the media industry in the US and created one of the world’s largest media conglomerates.

Time Warner owns several lucrative cable channels – including HBO, TNT, and TBS – whereas Fox is the owner of the dominant Fox News channel in the US.

The acquisition offer was seen as a way for Fox to stay competitive as other big players in the industry, including Comcast and AT&T, also engage in mergers and take over offers.

Some observers wondered if the withdrawal was just a ploy by Rupert Murdoch to drive Time Warner’s share price lower as part of his larger takeover strategy.

As part of the announcement, Fox also said it would authorize a $6 billion share repurchase program.

That pleased investors, who sent shares in the company up over 7% in trading after markets were closed.

Both companies are set to report their second-quarter earnings on Wednesday.

Ilwe1HLzmes
Clyde K. Valle

Clyde is a business graduate interested in writing about latest news in politics and business. He enjoys writing and is about to publish his first book. He’s a pet lover and likes to spend time with family. When the time allows he likes to go fishing waiting for the muse to come.

Recent Posts

Quincy Jones Dead at 91

Quincy Jones, the celebrated musician and producer who worked with Michael Jackson, Frank Sinatra, Ray…

9 hours ago

White House 2024: Voter Fraud Claims Flood Social Media

Misleading allegations, rumours and outright lies about voting and fraud are flooding online spaces in…

2 days ago

Spain: At Least 158 Killed In The Country’s Worst Flooding Disaster

At least 158 people have died in Spain's worst flooding disaster in generations. On October…

4 days ago

Russia Fines Google $20,000,000,000,000,000,000,000,000,000,000,000, Surpassing Global GDP

Google has been fined two undecillion (a two followed by 36 zeroes) roubles by a…

4 days ago

Financing Your Home Remodel: 7 Tips for Success

Embarking on a home remodel is an exciting journey, promising enhanced comfort, increased property value,…

2 weeks ago

Donald Trump Serves Up McDonald’s Fries While Kamala Harris Celebrates 60th Birthday with Church Choir

The US presidential candidates continued to campaign across key swing states on October 20. Footage…

2 weeks ago