Rupert Murdoch’s Fox withdraws bid for Time Warner

Los Angeles Times Rupert Murdoch’s 21st Century Fox has abandoned its $80-billion offer for rival media giant Time Warner.

The media mogul said Tuesday that combining the two companies would have been a “unique opportunity” but he wanted his bid to be friendly. Time Warner board members had dug in with their resistance, and Murdoch said he did not want to engage in a protracted and hostile battle.

Murdoch’s move was a stunning reversal following the company’s disclosure last month that it wanted to buy Time Warner, which boasts such assets as HBO, CNN, TNT, Cartoon Network and Warner Bros., Hollywood’s largest television and movie studio.

Most analysts had expected Murdoch to up Fox’s offer to more than $90 billion in an effort to create a global media colossus. Instead, Fox said it would spend $6 billion of its war chest to buy back its own shares in an effort to raise the value of Fox.

“Our proposal had significant strategic merit and compelling financial rationale and our approach had always been friendly,” Murdoch said in a statement. “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.”

Time Warner shares plunged more than 11 percent to $75.50 in after-hours trading after its stock surged since the offer was disclosed last month. Meanwhile, 21st Century Fox’s Class A shares surged 8 percent to $33.70 in after-hours trading.

More in Herald Business Journal

Snohomish County’s campaign to land the 797 takes off

Executive Dave Somers announced the formation of a task force to urge Boeing to build the plane here.

A decade after the recession, pain and fear linger

No matter how good things are now, it’s impossible to forget how the collapse affected people.

Panel: Motorcycle industry in deep trouble and needs help

They have failed to increase sales by making new riders out of women, minorities and millennials.

Costco rises as results display big-box retailer’s resiliency

Their model has worked in the face of heightened competition from online, brick-and-mortar peers.

For modern women, 98-year-old rejection letters still sting

In a stark new video, female Boeing engineers break the silence about past inopportunity.

Tax reform needs the public’s input on spending priorities

The GOP tax plan is a good idea, but the next step should give us a voice on how taxes are spent.

Commentary: GM, Boeing fight a war of words over Mars

Boeing is strongly signaling how crucial deep-space exploration is to its future.

Under cloud of ethics probes, Airbus CEO Enders to step down

He leaves in 2019 after 14 years. Meanwhile, aircraft division CEO Fabrice Bregier leaves in February.

$4.99 sandwich promotion irks some Subway business owners

Management insists that “most franchisees support the promotion.”

Most Read