updated 04:58 pm EDT, Tue August 5, 2014
Consolidation deal dead in the water due to alleged non-response
Rupert Murdoch and 21st Century Fox has rescinded its offer for its consolidation deal for Time Warner. Murdoch himself took to the airwaves, blaming Time Warner for the breakdown. He said that "Time Warner management and its board refused to engage with us to explore an offer which was highly compelling."
An offer for $85 per share plus cash was allegedly made by Murdoch. The deal is offered a premium of $14 per share at the then-current share price. The deal did not include the seperate Time Warner Cable entity, which has existed as a separate company since 2009 and is embroiled in merger regulatory approval with Comcast. Time Warner itself does hold some stake in Internet sales to consumers, oscillating between fifth and seventh over the last few years in the ranks of the largest US providers of broadband.
"Additionally, the reaction in our share price since our proposal was made undervalues our stock, and makes the transaction unattractive to Fox shareholders," Murdoch added. The magnate is going to take advantage of the share price drop, and repurchase $6 billion in stock over the next year.