In a statement, 21st Century Fox said that it still believed that a union of the two made sense, creating a colossus in the television and film giants. But Time Warner‘s firm rejection of its outreach and a drop in its own stock price made further pursuit of a bid untenable.
“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,” Mr. Murdoch said in a statement.
Instead, 21st Century Fox said that it would buy back $6 billion of its shares. Shares of 21st Century Fox rose sharply in after-hours trading, while Time Warner shares fell more than 10 percent.
Posts Tagged ‘Rupert Murdoch’
- Kathie Lee Gifford revealed this week that she has written a musical about the “Today” show. The 18-minute musical, titled “Not Today and Tomorrow’s Not Looking Good Either,” features all the show’s anchors and crew. “It’s going to be live and it’s going to be so much fun,” Gifford said on “Today” Friday.
- Fox Business anchor Liz Claman does a pair of interviews — with the Star-Ledger and Well + Good — about competing in her sixth New York City triathlon today. Claman is raising money for Building Homes For Heroes, a charity for wounded war veterans. “They embraced me and I embraced them and, to date, I’ve brought in $350,000 since I started raising money for them four years ago,” Claman said.
Following his fiery interview on CNN, former New York Mayor Michael Bloomberg was interviewed by Neil Cavuto on his Fox News show. In this interview, CNN came up as a topic of discussion. As 21st Century Fox chairman Rupert Murdoch looks to acquire Time Warner, in which case CNN would have to be spun off, Cavuto asked the finance and media mogul if he’d be interested in buying CNN.
“I can’t think of why we would be interested in buying CNN. We’ve got a business, we’ve got to reinvest in our business and work very hard. I just did an interview in the same building with Wolf Blitzer on CNN. A lot of people like CNN, a lot of people watch it. Ted Turner had a great concept when he started it.”
“You never say never, but in this case I can say probably never.”
Fox may reach an agreement to sell its wholly-owned Sky Italia unit and its 57 percent stake in Sky Deutschland AG to British Sky Broadcasting Group Plc in the next two weeks, the people said, asking not to be identified because the deliberations are private. The assets could be valued at about 10 billion euros ($13.5 billion), people familiar with the matter said in May. Fox owns a 39 percent stake in BSkyB. The proceeds could give Murdoch additional cash for a Time Warner bid without having to borrow more. While Fox is willing to pay more than $75 billion after Time Warner’s board rejected its $85 per-share bid, no final decision has been made on whether to bump the offer, the people said. JPMorgan & Chase Co., the biggest U.S. bank by assets, and Goldman Sachs Group Inc., the fifth-biggest, will help Murdoch finance the bid.
And the Los Angeles Times reports if 21st Century Fox takes over Time Warner, CNN might sell for more than analysts think.
On “Shepard Smith Reporting” this afternoon, Smith and Maria Bartiromo waded into the major media news of the day that Fox News’ parent company, 21st Century Fox, made an $80 billion offer last month to buy Time Warner, the parent company of CNN.
Saying she would “not be betting against Rupert” (and also noting she has no insider information), Bartiromo said she suspects Murdoch will come back with a higher bid that the Time Warner shareholders will ultimately accept. Under such a deal, 21st Century Fox would sell CNN to appease regulators — “beat ‘em, buy ‘em, sell ‘em,” as Smith described it. Under that scenario, Bartiromo says she sees CBS as a likely bidder for CNN.
The deal is off — for now — but just the thought of 21st Century Fox owning Time Warner set media tongues wagging this morning.
21st Century Fox’s $80 billion offer for Time Warner, first reported by the New York Times‘ Andrew Ross Sorkin, who also co-hosts CNBC’s “Squawk Box,” came in the form of a letter from Fox to the Time Warner board. “The Time Warner board of directors declined to pursue our proposal,” a Fox statement read. “We are not currently in any discussions with Time Warner.”
The cable news and business networks have been reporting on the proposed mega media merger. CNN’s Carol Costello reported the dashed deal as “breaking news.” “Time Warner, our parent company saying thanks but no thanks to a multibillion dollar takeover bid from Rupert Murdoch.”
TIME (itself recently spun off from Time Warner) reports CNN would have been spun off had the deal happened. Or, as Stuart Varney reported on FNC, the deal “would have been minus CNN because you cannot have them getting together with Fox.”
Time Warner is a top trending topic on Twitter this morning.
— Francisco Cortes (@CortesLatino) July 16, 2014
Murdoch’s quest for yet more money and power http://t.co/7dQxHZviMO
— Nick Davies (@Bynickdavies) July 16, 2014
Inadvertently, Murdoch has helped out his rival’s shareholders, as CNBC’s Carl Quintanilla tweets:
— Carl Quintanilla (@carlquintanilla) July 16, 2014
Shares of Time Warner were up sharply this morning on news that Rupert Murdoch‘s 21st Century Fox made an $80 billion takeover bid for the company in recent weeks. The New York Times reports that Time Warner’s board, after discussing the proposal at length, “sent a terse letter rejecting the offer, saying the company was better off remaining independent”:
As part of the proposal to buy Time Warner, people briefed on the proposal said, 21st Century Fox indicated that it would sell CNN to head off potential antitrust concerns since Fox News competes directly with CNN. Putting CNN on the auction block would likely stir up a bidding war for the news channel; both CBS and ABC, a unit of the Walt Disney Company, have long been viewed as interested suitors.
The company first approached Time Warner in early June, these people said. Chase Carey, the president of 21st Century Fox and a longtime top lieutenant to Mr. Murdoch, met privately with Time Warner’s chief executive, Jeff Bewkes, these people said. Later that month, the company delivered a formal takeover proposal worth $85 in stock and cash for each Time Warner share. Read more
TVNewsers turned up last night to celebrate TIME’s 100 most-influential people. This year, CBS’s Charlie Rose and FNC’s Megyn Kelly made this list. Former honorees Rupert Murdoch, Matt Lauer, Katie Couric, Mehmet Oz and Barbara Walters made an appearance at last night’s event to mingle with the eclectic crowd of politicians, activists, scientists and entrepreneurs.
“Feels great, [I'm] honored, I love it,” Rose told us about his appearance as an Icon in this year’s TIME 100. However, he wasn’t quite sure if “Icon” was the appropriate designation: “It sounds like a lifetime achievement thing, and I think I’m in mid-career,” he quipped. Read more
Rupert Murdoch sits down for an extensive Q+A with Fortune‘s Pattie Sellers, weighing in on the recent news that his son Lachlan Murdoch will re-join News Corp. and 21st Century Fox, his divorce from Wendi Deng and the possible Republican Presidential candidates of 2016. He also talked about Fox News and the recently-launched Fox Sports 1:
Does it bother you at all, Rupert, that there is a view that Fox News has contributed in a big way to the political discontent in the U.S., degraded the political process, and maybe, in spotlighting the Tea Party, even hurt the Republican Party? I think it has absolutely saved it. It has certainly given voice and hope to people who didn’t like all that liberal championing thrown at them on CNN. By the way, we don’t promote the Tea Party. That’s bullshit. We recognize their existence.
Your new Fox Sports 1 network is a very big bet. Well, it’s a pretty big bet. We certainly expect to lose a couple hundred million dollars for a year or two, and then we expect it to turn, and we’ll gradually make it into a major alternative to ESPN. We’re not going to put ESPN out of business.
Why does ESPN need an alternative? I think the public deserves choice.
Fox News and FOX TV Stations SVP Sharri Berg was honored as the Jewish Community Relations Council of New York’s 2014 Corporate Leader Wednesday night in an event at the Pierre Hotel. Fox News chairman and CEO Roger Ailes, a previous JCRC honoree, introduced Berg.
Berg, who has been with Fox for more than 17 years and was promoted to her current role in October 2005, is responsible for synergy between Fox News and the 28 Fox-owned TV stations.
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