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Rupert Murdoch withdraws offer for Time Warner

Published on Aug 6, 2014 6:05 AM
Twenty-First Century Fox Inc Chief Executive Rupert Murdoch smiles on the second day of the Allen and Co. media conference in Sun Valley, Idaho on July 10, 2014. -- PHOTO: REUTERS

NEW YORK (AFP) - Media tycoon Rupert Murdoch said on Tuesday his 21st Century Fox group had withdrawn its bid for Time Warner, a massive offer which could have shaken up the media-entertainment world.

Worth an estimated US$80 billion (S$100 billion), the offer was taken off the table after Time Warner "refused to engage with us" and the news hurt the share price of 21st Century Fox, Murdoch said.

"The reaction in our share price since our proposal was made undervalues our stock and makes the transaction unattractive to Fox shareholders," he said, in a statement.

"These factors, coupled with our commitment to be both disciplined in our approach to the combination and focused on delivering value for the Fox shareholders, has led us to withdraw our offer." Murdoch said he made the decision even though the deal "had significant strategic merit and compelling financial rationale and our approach had always been friendly". The statement said the board authorised a US$6 billion share repurchase programme after withdrawing the offer.

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