The Murdoch family controls the huge media conglomerate 21st Century Fox and made an $80 billion takeover bid for the acquisition of Time Warner. The Time Warner board quickly rejected the offer.
According to inside sources, the offer was made at the start of June and the $80 billion value was covered through a mix of 40% cash and 60% stocks. Price tags put offers at $85 per share, a 20% premium of the closing price for the company’s share.
The proposition appeared as 21st Century Fox tries to create the biggest media company in the world. That would be necessary to rival giants like Comcast and Disney.
The combined power of 21st Century Fox and Time Warner would have a worth of $141 billion with a yearly revenue of $65 billion.
A massive merger needs to go through high regulatory scrutiny. In order to make the deal happen, 21st Century Fox was prepared to sell some Time Warner assets like CNN.