Rupert Murdoch’s 21st Century Fox has withdrawn its offer to buy Time Warner, the media mogul announced this afternoon in a press release:
We viewed a combination with Time Warner as a unique opportunity to bring together two great companies, each with celebrated content and brands. Our proposal had significant strategic merit and compelling financial rationale and our approach had always been friendly. However, Time Warner management and its Board refused to engage with us to explore an offer which was highly compelling. Additionally, the reaction in our share price since our proposal was made undervalues our stock and makes the transaction unattractive to Fox shareholders. These factors, coupled with our commitment to be both disciplined in our approach to the combination and focused on delivering value for the Fox shareholders, has led us to withdraw our offer.
In mid-July, news broke that Mr. Murdoch wanted to buy Time Warner and was willing to pay $80 billion. Since Mr. Murdoch usually gets what he wants, people assumed that he would get Time Warner. But Time Warner Inc. rejected the offer, leading industry analysts to ultimately conclude that the company was actually opposed to the deal and wasn’t just negotiating.