Will Twenty-First Century Fox Inc (FOX)’s Bid for Time Warner Inc (TWX) Again?

Twenty-First Century Fox Inc (NASDAQ:FOX) CEO Rupert Murdoch announced in a statement yesterday that Fox withdrew its offer to buy Time Warner Inc (NYSE:TWX) for $80 billion. Instead, Fox has launched a $6 billion buyback of its own stock. Ed Mullane, Sector Editor at Merger market group discussed this development on CNBC.

Twenty-First Century Fox Inc (NASDAQ:FOX)

“[...] With the changes occurring in the US media market, with the evolution of Netflix Inc. (NASDAQ:NFLX), the shift on people deciding when they want to watch their television shows and possible changes in advertising over the next few years, he [Rupert Murdoch] feels there’s a sense to be bigger and he needs to do something important. So I anticipate that he’ll sort of let things die down for a little while”, said Ed Mullane regarding Twenty-First Century Fox Inc (NASDAQ:FOX)’s decision to withdraw its bid.

When questioned about the likelihood of more such deals to follow between other media players such as The Walt Disney Company (NYSE:DIS), Mullane commented:

“There will be two levels in deals – the mega deals and there will be deals of the smaller players [...] The question with the smaller independent type companies is ‘can they develop the quality of program where they can demand the pricing to support the economics of maintaining an independent company?’ [...].”

Twenty-First Century Fox Inc (NASDAQ:FOX)’s bid to buy Time Warner Inc (NYSE:TWX) for $80 billion earlier had made Wall Street anxious. Time Warner’s board too did not seem very keen on this unsolicited offer and started taking steps towards rejecting the bid. Had the takeover gone through, Rupert Murdoch of 21st Century Fox would be controlling over 40 % of the cable market and 30 % of the movie market? The concentration of such a vast media pool under a single authority is not a desirable scenario from the perspective of the US media landscape and it was in the best interests of the country’s millions of media consumers that the deal was withdrawn.

Disclosure: none

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!