Shares of Time Warner (TWX) jumped more than 17% to $83 and change on the NYSE after news that Rupert Murdoch’s media giant ’21st Century Fox’ in recent weeks attempted to buy Time Warner, but the offer, first reported by The New York Times, was rejected.
Time Warner on Wednesday confirmed that it had rejected Murdoch’s cash-and-stock bid worth about $80 billion saying that “after consultation with its financial and legal advisers, determined that it was not in the best interests of Time Warner or its stockholders to accept the Proposal or to pursue any discussions with Twenty-First Century Fox.”
Time Warner also said that Murdoch’s entertainment group had offered to acquire all of the outstanding shares of the company for a combination of 1.531 of its Class A non-voting common shares and $32.42 in cash for every Time Warner share — or a total of nearly $86.30, a premium of roughly 22% to Time Warner’s closing PPS on Tuesday.
Earlier on Wednesday, 21st Century Fox also confirmed the failed takeover bid, which based on the Times account was made in early June, saying “21st Century Fox can confirm that 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.”
But as the Times notes, Murdoch won’t give up so eaıly on his ambition to put Time Warner in his empire. “While the talks between the two companies have thus far been considered friendly, people involved in the discussions said that Mr. Murdoch [who has been planning the deal with his inner circle: his two adult sons and the co.’CFO John Nallen] is determined to buy Time Warner and is unlikely to walk away.”