Time Warner Inc. (TWX) rejected Twenty-First Century Fox’s (FOX) $80 billion takeover bid, reports The New York Times. The offer represented a 25% premium to Time Warner’s stock price. According to sources quoted by The Times, Twenty-First Century Fox would have paid 60% of the deal in stock and 40% in cash, and the media giant was willing to raise $24 billion to help finance the deal.
A Time Warner/Twenty-First Century Fox merger would have combined some of the most popular – and lucrative – cable channels under the same roof, including properties such as CNN, Fox News, HBO, TNT, FX and TBS. Fox did note that it would have sold CNN to another buyer to avoid antitrust concerns. The deal would also have affected Hollywood since Time Warner controls Warner Bros. and Twenty-First Century Fox owns 20th Century Fox movie studio.
Yahoo Finance’s Jeff Macke says Time Warner will be “swallowed up” eventually – either by Fox or a competitor. Time Warner could sit on the sidelines and wait for a $90 billion proposal.
“You have to say no to the first offer – I don’t care what it is,” Macke says.
Will Rupert Murdoch, who oversees the Fox media empire, give up his bid for Time Warner so easily?
Not a chance, adds Macke.
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