Rupert Murdoch’s Fox abandons Time Warner takeover bid

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Traders work on the floor of the New York Stock Exchange

Rupert Murdoch’s Twenty-First Century Fox decided to pull its $80 billion offer to buy Time Warner Inc on Tuesday, abandoning plans to create one of the world’s largest media conglomerates. The surprise announcement appeared to cut short what many investors had viewed as an inevitable battle of attrition over a deal that would have joined two of Hollywood’s biggest studios and TV networks from TNT to Fox News. Murdoch, who is Fox’s chairman and CEO, cited Time Warner’s management and its board’s refusal to come to the table to discuss a takeover as one reason for the stunning turnabout. Murdoch also cited Fox’s share price – down about 11 percent since the offer was unveiled on July 16 – saying it had become undervalued, making the deal “unattractive to Fox shareholders.” Time Warner, which had fiercely resisted Murdoch’s advance, issued a statement saying it was committed to enhancing long-term value.


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