5 August 2014
Last updated at 18:09 ET
Time Warner rejected Fox's initial offer in July.
The 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.
Continue reading the main story
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.
Altered landscape
21st Century Fox withdraws bid for Time Warner
Time Warner had rejected 21st Century Fox's $80bn (£47bn) take over offer in July
Rupert
Murdoch's 21st Century Fox has withdrawn its bid to purchase US
entertainment giant Time Warner for an estimated $80bn (£47bn).
The 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.
Continue reading the main story
Twenty-First Century Fox Inc Class B
Last Updated at 05 Aug 2014, 16:12 ET
| price | change | % |
|---|---|---|
| 31.03 |
-
-0.84
|
-
-2.64
|
Fox's share price has declined by 11% since news of the takeover was revealed.
"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.
Altered landscape
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 Mr Murdoch to drive Time Warner's share price lower as part of his larger takeover strategy.
"This could easily be part of their negotiating strategy," said Brett Harriss, an analyst with Gabelli & Co.
As part of the announcement, Fox also said it would authorise a $6bn share repurchase programme.
That pleased investors, who sent shares in the firm up over 7% in trading after markets were closed.
Both companies are set to report their second-quarter earnings on Wednesday.
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 Mr Murdoch to drive Time Warner's share price lower as part of his larger takeover strategy.
"This could easily be part of their negotiating strategy," said Brett Harriss, an analyst with Gabelli & Co.
As part of the announcement, Fox also said it would authorise a $6bn share repurchase programme.
That pleased investors, who sent shares in the firm up over 7% in trading after markets were closed.
Both companies are set to report their second-quarter earnings on Wednesday.
Related Stories
From other news sites
-
Reuters Fox might build case for Time Warner merger 12 hrs ago
-
International Business Times UK Rupert Murdoch's Fox and Time Warner to Speak About Likely Merger in Earnings Call 14 hrs ago
-
Business Insider Australia Rupert Murdoch's Fox Is About To Make Its Most Aggressive Push For A Time Warner Deal 15 hrs ago
-
Yahoo! UK and Ireland Murdoch's Fox expected to push for Time Warner deal on Wednesday 28 hrs ago
-
The Independent New kids on the media block still need to add the old school ruthlessness of their predecessors 02 Aug 2014
- About these results
No comments:
Post a Comment
Please leave a comment-- or suggestions, particularly of topics and places you'd like to see covered