21st Century Fox Says It's Quitting the Hunt for Time Warner
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21st Century Fox said Tuesday afternoon that it had withdrawn its offer to buy Time Warner, a bid that had thrown the media business into a whirlwind of speculation and concern over the concentration of TV and movie business in the hands of one company.
“We viewed a combination with Time Warner as a unique opportunity to bring together two great companies, each with celebrated content and brands,” 21st Century Fox Chairman-CEO said in a statement. “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.”
The statement comes a day before both companies are set to report their most recent financial results and hear questions from analysts about whether a deal should or could happen.
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