Tuesday, July 27, 2021

MURDOCH MOBILIZES FOR ASSAULT ON TIME WARNER

July 21, 2014 by · Leave a Comment 

Rupert Murdoch is marshaling his own resources and those of two of the nation’s largest lending institutions in his bid to take over Time Warner. According to the Financial Times, Murdoch’s 21st Century Fox has lined up Goldman Sachs and JPMorgan to provide a loan of about $25 billion to help fund the proposed deal. The amount, one of the largest takeover loans ever written according to the FT, would form the principal component of Murdoch’s cash-and-stock offer for the company. Originally, the 21st Century Fox offer was worth about $83 per share, but news of Murdoch’s plans sent Time Warner’s stock soaring to a 52-week high; at midday trading in New York today (Monday), it was worth $86.77 per share. A substantial part of the loan amount could be repaid through a sale of CNN — something that Murdoch has said would be required if the deal is to pass regulatory muster. Bloomberg said today (Monday) that Murdoch would also sell off his Italian and German satellite-TV assets, Sky Italia and Sky Deutschland, to Britain’s BSkyB, a company that he controls. Sales of the CNN and satellite assets would allow Murdoch’s 21st Century Fox to pay off the bank loans relatively quickly.