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Rupert Murdoch is a shrewd businessman who tends to get what he wants and his 21st Century Fox media empire now wants Time Warner. Don’t expect him to suddenly drop the hunt because his first offer was turned down.
News broke on Thursday that Murdoch bid $80 billion for Time Warner in June, or $85 a share. Time Warner turned down the offer, which would have completely reshaped the media landscape.
According to Reuters, TW shareholders were likely hoping for a bigger bid, closer to $95 a share. Another issue was that Murdoch’s offer consisted of 60 percent Fox stock to 60 percent cash and TW may have wanted more cash than stock.
Even with this one offer turned down, Murdoch is expected to take another swing, notes USA Today.
“Mergers and acquisitions is kind of like dating in high school,” TVPredictions.com’s Phil Swann told USA Today. “Somebody will make an initial overture and they might be rejected, but they come back again with a better offer.”
If Fox and Warner suddenly became one company, the effects on the entertainment world would be enormous. Two of the major film studios - 20th Century Fox and Warner Bros. - would be under one roof. X-Men and Superman movies would be made by the same company and TNT and FX could become indistinguishable. Murdoch and Fox could have a hand in HBO programming.
If this deal happens, you can bet Washington will look at it closely. This would be the second major media deal of the year, following Comcast’s acquisition of Time Warner Cable for $45 billion. (TWC is a different entity from Time Warner.)
image via INFphoto.com