Time Warner refuses offers for acquisition
Time Warner, one of the biggest media companies has turned down a whopping £90 billion offer from Rupert Murdoch.
Accepting the offer could have put the company in an advantageous position, however, it chose not to accept any such offers from other companies. Time Warner CEO Jeff Bewkes turned down the offer, after which its share prices rose by 18 percent in New York.
Analysts predict that in addition to 21st Century Fox, other companies might make a move, too.
Fox said in a statement, “We made a formal proposal to Time Warner last month to combine the two companies. The Time Warner board of directors declined to pursue our proposal. We are not currently in any discussions with Time Warner.”
Post the rejection Fox’s share prices fell by 6 percent and the Wall Street said that the deal could affect the company’s performance in various ways. Time Warner said that the company is confident that it would not require any company’s help to pursue its strategy and add more value to it.
The deal could have made Time Warner make $65bn in revenues and $150bn in market capitalization.
“It would be a seismic event if the deal happens and there could be competition concerns”, said Toby Syfret of Enders Analysis in the UK. It is also widely rumoured that Murdoch is looking for offers to sell CNN and the movie channel HBO. Though these are big business conglomerates, they are still intimidated by internet companies like Apple and Google which are valued at $575bn and $400bn respectively.
This is the third deal planned by Fox this year and the company is looking to merge its European TV assets. To execute the plan, it is trying to make BskyB to take over Sky Italia and Sky Deutschland and become dominant in the area.