Time Warner rebuffs Fox bid, but Murdoch determined
Scott Eells/Bloomberg via Getty ImagesNews Corp. Chairman Rupert Murdoch
By Soyoung Kim and Liana B. Baker

NEW YORK -- Rupert Murdoch's 21st Century Fox (FOXA) said Wednesday it had offered to buy Time Warner (TWX), a move that would unite two of the world's most powerful media conglomerates, but Time Warner rebuffed its offer.

Time Warner's stock jumped 17.3 percent to $83.33 on the New York Stock Exchange after news that Murdoch had his sights on Time Warner, the owner of the Warner Bros. movie studio and cable channels such as HBO and CNN, among other media properties.

Murdoch's cash-and-stock bid was worth about $80 billion, or $85 a share, people familiar with the matter told Reuters earlier Wednesday. The offer, first reported by The New York Times (NYT), consisted of 60 percent in stock and the rest in cash.

Twenty-First Century Fox later confirmed it had made a formal takeover proposal in June but said there were no talks currently under way.

Even so, Murdoch and his advisers are unlikely to abandon his ambition to put Time Warner in his empire so easily, one of the people said, pointing out that he has the "disciplined determination" to get a deal done.

Fox's overtures to Time Warner could accelerate a wave of consolidation that is already reshaping the U.S. media landscape.

Reuters reported this month that Murdoch was in the midst of a deal that would give Fox the firepower to buy a content company.

Fox, which owns cable news channel Fox News as well as movie studio 20th Century Fox, has indicated it would sell CNN as part of its proposal to buy Time Warner to clear any regulatory hurdles, according to the people familiar with the matter.

"[It] would be good deal for Fox if it goes through Washington [regulators] with CNN sales," Wunderlich Securities analyst Matthew Harrigan told Reuters in an email. He said the "fair public value" for Time Warner was $82 a share.

Fox currently estimates that a combined company would save $1 billion in costs and possibly more, primarily by cutting sales staff and back-office functions, the people familiar with the matter said.

It believes that detailed negotiations with Time Warner could reveal much higher synergies than $1 billion, which may justify Fox sweetening its offer, the people said.

The combined company's revenue would be more than $60 billion.

Twenty-First Century Fox is in the middle of a reorganization of its television business as the network seeks to lift itself out of last place among the big U.S. broadcasters.

The shakeup of Rupert Murdoch's Twenty-First Century Fox's TV units comes a year after the film and TV company was spun off from Murdoch's News Corp. (NWS), which now operates publishing assets, including the Wall Street Journal.

Twenty-First Century Fox is being advised by Goldman Sachs (GS) and Centerview Partners, while Time Warner is working with Citigroup (C).

21st Century Fox Tries to Buy Time Warner

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If you removed the undocumented and visa workers from the June 2014 unemployment report just how great would the BLS report look then?

July 16 2014 at 5:35 PM Report abuse rate up rate down Reply

A merger means job cuts no matter who gets Time Warner.

July 16 2014 at 4:36 PM Report abuse rate up rate down Reply

The world has had enough of Murdoch.

July 16 2014 at 12:15 PM Report abuse rate up rate down Reply
1 reply to Lawrence's comment

the whole country has had enough of this terrorist muslim clown n wants him impeached n removed from our white house in handcuffs in 2014 along with all his illegal immigrants he let "BREAK" into America. !!!

July 16 2014 at 12:31 PM Report abuse -2 rate up rate down Reply
1 reply to korrectionelecshun's comment

The whole country, meaning fools like you, most of us being intelligent enough to know, he's done no worst than any of the other clowns in the office. As for illegals, it was Bush, who in 2008 enacted the Legislation banning the deportation of minors, until all resources to find family members in the USA are exhausted through the Courts.

Find another Party to join, you make us Republicans look all look like drooling idiots.

July 16 2014 at 1:27 PM Report abuse +2 rate up rate down

Can you say "MONOPOLY'?

July 16 2014 at 12:04 PM Report abuse rate up rate down Reply

If FOX gets control of CNN I will cancel my Verizon FIOS Service and sell all my Flat screen TV's. This Mudock chacter is a sleeze Bag and should not be allowed to own any TV news media in the United States. He and his FOX network are a big contributor to the civil unrest present in America Today. He continues to Televise absolute LIES about the President and we as Citizens have no recourse except to TURN HIM OFF.

July 16 2014 at 11:54 AM Report abuse -1 rate up rate down Reply
2 replies to clafoon's comment

terrorist muslim ovomit is the cause of the civil unrest that is present in our country today, ,remove ovomit from our white house in handcuffs in 2014 n America can start recovering from all ovomits damage n devastation he caused our nation in the last 5 plus years now along with all his illegal immigrants ovomit let "BREAK" into America!!!!!

July 16 2014 at 12:38 PM Report abuse -3 rate up rate down Reply
1 reply to korrectionelecshun's comment

Another FAUX protest? Crawl back under the rug.

July 16 2014 at 12:59 PM Report abuse rate up rate down

Fox will sell CNN if the deal gets done. Maybe COMCAST will take CNN. Funny CNN is the hot potato here.

July 16 2014 at 4:46 PM Report abuse rate up rate down Reply