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Murdoch Ends Bid for Time Warner

Aug 5, 2014  •  Post A Comment

Rupert Murdoch, chairman and CEO of 21st Century Fox, has withdrawn his bid for Time Warner. He had put together an $80 billion offer for the company, which Time Warner had rejected.

Here is the statement Murdoch released this afternoon:

” ‘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. However, Time Warner management and its Board refused to engage with us to explore an offer which was highly compelling. Additionally, the reaction in our share price since our proposal was made undervalues 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.
” ’21st Century Fox’s future has never been brighter. The strength of our leading franchises, combined with the power of our emerging growth businesses and the leadership positions of our international enterprises put us on a path for even greater success.
” ‘The Board today authorized a $6 billion share repurchase program. The repurchase of an additional $6 billion of Class A Common Stock is expected to be completed in the next 12 months.’
“Mr. Murdoch continued, ‘This significant return of capital underscores the Company’s ongoing commitment to disciplined capital allocation and returning value to shareholders in a meaningful way.’”
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One Comment

  1. The real topic here is C O N T R O L over way too much media by one out-of-control ego maniac.

    Murdock will put whatever spin he wants on any situation at any moment. Suddenly it’s in the best interests of the FOX stock holders to drop the proposed purchase of Time Warner. Sure FOX stock has taken a couple of up & down hits over this, as has Time Warner. What-a-ya-bet old Rupert’s stock people bought and sold both stocks frantically on momentary basis’s to a consistent profit for every sell-buy-sell activity?

    Too few people have too much influence over American media. (No one company should own thousands of our radio stations for example.)

    It all boils down to money and the nasty trail it leaves in and out of the pockets of lawyers changing laws inside The Beltway.

    So, Rupert doesn’t get what he professed to want, but somehow, I think that was a smoke screen for a bigger Murdock surprise to come. Stay tuned.
    Peter Bright

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