Friday, September 24, 2021

WHY DID MURDOCH WITHDRAW HIS BID FOR TIME WARNER?

August 6, 2014 by · Leave a Comment 

When Rupert Murdoch wants something, he usually gets it, one way or another. That’s why many Wall Street analysts expressed astonishment on Tuesday when Murdoch abruptly withdrew his $80-billion bid for Time Warner. And some of them clearly did not believe that Murdoch was shutting the door on a deal to buy the company. BTIG analyst Richard Greenfield speculated that Murdoch was testing Time Warner chief Jeffrey Bewkes, who today (Wednesday) must face shareholders who had seen their stock soar after Murdoch’s bid only to see it plunge after he withdrew it. Although the company today posted strong results for its latest quarter, its shares continued to tumble. Up to more than $88 following Murdoch’s bid, it was down 15 percent to $75.43 at midday trading today. "This put the ball firmly in Jeff Bewkes’ court now," Greenfield told Britain’s Guardian newspaper. "I think this is classic Murdoch gamesmanship. Murdoch is saying: ‘OK, so you are not even going to entertain this bid, we have other options let’s see how your shareholders like this.’" However, the New York Times suggested that Murdoch’s retreat was not a negotiating ploy as it observed, "The decision to walk away represents one of the biggest defeats in Mr. Murdoch’s six-decade career as a daring deal maker." Shares of 21st Century Fox were up 3.3 percent to $32.08.