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Time Warner rejects $80B offer from 21st Century Fox

Reported by Andrew Ross Sorkin; written by CNBC staff
Adam Jeffery | CNBC

Time Warner (TWX) has rejected an $80 billion formal offer from News Corp.'s (FOXA) 21st Century Fox, sources told CNBC Wednesday.

In premarket trading following the report, shares of Time Warner jumped more than 12 percent. (Click here for the latest quote.) (TWX)

The sources said that 21st Century Fox offered $85 a share in cash and stock for the media giant.

In order to appease regulators on antitrust issues, 21st Century Fox said it would sell its CNN cable network, the sources said.

Chase Carey, 21st Century Fox's president and CEO, met with Time Warner CEO Jeff Bewkes in early June to discuss the deal.

Time Warner's board of directors sent a rejection letter in early July, the sources said.

Rupert Murdoch is "determined" to buy Time Warner, despite the board's rejection, sources said.

-Reported by Andrew Ross Sorkin; written by CNBC staff