Rupert Murdoch, the founder, chairman, and CEO of News Corporation, said that he made an unsuccessful $80 billion bid to take over Time Warner. Chase Carey, the president of News Corporation’s Fox network, met with Time Warner CEO Jeff Bewkes in early June to discuss a takeover proposal worth $85 in stock and cash for each Time Warner share. This was about a 25% premium to Time Warner’s stock price at that time.
The Time Warner board sent Fox a letter discussing the proposal and said it would remain independent.
?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,? said Fox in a statement.
Time Warner said that there were operational and regulatory risks to being acquired by 21st Century Fox. Time Warner added that rejecting the proposal was in the best interests of its shareholders. If the deal went through, Murdoch would be the head of a large group of media brands, including HBO, TNT, TBS, Fox News, and Warner Brothers. Murdoch’s News Corporation also owns The Wall Street Journal and HarperCollins. Time Warner also runs CNN, which would have been spun off as part of the deal due to antitrust concerns since it competes with Fox News.