Friday, September 24, 2021

ANOTHER MEDIA MEGAMERGER MAY BE IN THE WORKS

July 16, 2014 by · Leave a Comment 

Time Warner recently rejected an $80-billion takeover offer by Rupert Murdoch’s 21st Century Fox, the New York Times reported today (Wednesday), citing unnamed people briefed on the matter. The newspaper observed that Murdoch has built a reputation on pursuing bold deals that were often initially rebuffed. If he is successful in the pursuit of Time Warner, two of Hollywood’s largest film studios, 20th Century Fox and Warner Bros., would come together under a single corporate umbrella. So would Fox TV and HBO, along with Turner Broadcasting’s cable channels including TBS, TNT, the Cartoon Network and Turner Sports. Fox News and CNN would not join hands, however, the Times said, noting that the proposed deal would stipulate that Time Warner would sell CNN, possibly to ABC or CBS, who have long shown an interest in acquiring the news channel. According to the Times report, one of the principal areas of disagreement concerns Fox’s proposal that 60 percent of the purchase price be paid for with non-voting stock. Voting stock in 21st Century Fox is controlled by Murdoch, his family and close associates. In a statement issued early today (Wednesday) Fox said that it "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."