Time Warner rejected an $80 billion offer from Rupert Murdoch’s 21st Century Fox to combine the two New York media giants — a deal that would reshape the news and entertainment worlds.
Time Warner said on Wednesday that the bid valued at $85 a share wasn’t in the best interests of shareholders and carried strategic, operational and regulatory risks.
Twenty-First Century Fox also confirmed in a statement that its bid was rejected last month and that it’s not currently in discussions with Time Warner.
But 21st Century Fox hasn’t given up after its initial offer was rebuffed and is willing to pay more than $85 a share, Bloomberg News reported, citing people familiar with the matter.
The proposed deal would bring together Time Warner’s HBO, cable channels such as TNT and TBS and the Warner Bros. film studio with 21st Century Fox’s FX, Fox News and the Fox broadcast network, among other holdings.
Twenty-First Century Fox would have sold Time Warner’s CNN news channel as part of the deal to avoid anti-trust concerns, according to The New York Times, which first reported the deal. Fox News competes directly with CNN.
Before news of the bid broke, Time Warner CEO Jeff Bewkes sparked speculation that he was slimming down the company for a potential sale. He spun out Time Warner Cable as a separate company in 2009, and last month completed the spin-off of the Time Inc. publishing division.
Media companies across the board are looking to bulk up as a way to control costs and gain leverage in negotiations between cable-TV providers and programmers.
Shares of Time Warner were up nearly 17 percent, or $12, to $83.01 at 10:50 a.m. in New York. Twenty-First Century Fox was off 62 cents at $33.53.
Before it was made a separate entity a year ago, 21st Century Fox was part of News Corp., which owns the New York Post.