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Fox Drops Bid to Grab Time Warner

Rupert Murdoch is moving on
By Newser Editors and Wire Services
Posted Aug 5, 2014 4:01 PM CDT
Fox Drops Bid to Grab Time Warner
Rupert Murdoch has dropped his plan to go after Time Warner.   (AP Photo/Jason Reed, Pool)

(Newser) – A deal that would have combined two of the world's biggest media companies is no more—21st Century Fox is abandoning its attempt to take over Time Warner. The about-face announced today comes three weeks after Time Warner revealed that it had rejected 21st Century Fox's unsolicited $76 billion buyout offer. Besides that rebuff, 21st Century Fox CEO Rupert Murdoch cited a decline in his New York company's stock price as one of the reasons for ending the pursuit of Time Warner.

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"The reaction in our share price since our proposal was made undervalues our stock and makes the transaction unattractive to Fox shareholders," said Murdoch in a statement picked up by the Wall Street Journal. Instead, 21st Century Fox's board approved a plan to spend $6 billion buying back the company's stock during the next year. After the news, Fox shares rose 8% and Time Warner's fell 11%, reports MarketWatch. (Read more Time Warner stories.)

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