Time Warner Spikes 20% After Rejecting Rupert Murdoch's $80 Billion Takeover Offer

Tyler Durden's picture

The media giant 21st Century Fox, the empire run by Rupert Murdoch, made an $80 billion takeover bid (around $86.00) in recent weeks for Time Warner Inc. but was rebuffed, people briefed on the matter said on Wednesday. As WSJ reports, The offer was first made orally in June and then with a formal letter in July. Time Warner rejected the offer curtly, after Chief Executive Jeff Bewkes took the proposal to the board. The deal - which valued Time Warner at 12.6x LTM EBITDA - was notably above even recent record high LBO multiples (and would be financed by none other than Goldman). Of course, this deal - should it ever be consummated (as the stock price suggests) would give Murdoch control of both the left and the right propoganda with CNN and Fox.

21st Century Fox (NASDAQ: FOXA, FOX) today issued the following statement confirming press reports that it made a proposal to combine with Time Warner Inc.:

“21st Century Fox can confirm that we made a formal proposal to Time Warner last month to combine the two companies. The Time Warner Board of Directors declined to pursue our proposal. We are not currently in any discussions with Time Warner."

 

As WSJ reports

Time Warner rejected an offer made by 21st Century Fox Inc. that valued the owner of cable channels CNN and HBO at $85 a share.

 

The offer was first made orally in June and then with a formal letter in July. Time Warner rejected the offer curtly, after Chief Executive Jeff Bewkes took the proposal to the board. Since then, Time Warner has been unwilling to engage with Fox, according to people familiar with the situation.

 

Fox has suggested that synergies of a combination could be worth more than a billion dollars, but it wanted to have discussions to fully ascertain value of those savings and Time Warner hasn't been willing to talk, one of the people said.

 

The deal values Time Warner at 12.6 times the company's past 12 months of earnings before interest, taxes, depreciation and amortization, a person said. It would be financed by Goldman Sachs and additional banks, the person said.

 

 

As NY Times reports,

Together, 21st Century Fox and Time Warner would become a colossus with an array of television networks and channels like Fox, Fox News, FX, TNT and TBS; the premium subscription channel HBO, movie studios like 20th Century Fox, Warner Bros. and other prominent outlets. It would also combine Fox’s growing sports business with the broadcast rights that Time Warner owns for professional and college basketball and Major League Baseball, among other sports.

The combined company would have total revenue of $65 billion.

*  *  *

It seems the ownershiup of both the left and the right was too much for the deal to handle...

As part of the proposal to buy Time Warner, people briefed on the proposal said, 21st Century Fox indicated that it would sell CNN to head off potential antitrust concerns since Fox News competes directly with CNN.

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thatthingcanfly's picture

Which of those networks represents the right, again?

TeamDepends's picture

They all represent the global central planners.

The subtle language in many UN documents hides the assault on national sovereignty. While sounding affirmative, it undermines any "sovereign" action that might oppose UN policies. The UN Declaration on Human Rights illustrates this manipulative language well. Its Article 18 upholds "the right to freedom of thought, conscience and religion..." Article 19 affirms "the right to freedom of opinion and expression...."

But Article 29 states that "these rights and freedoms may in no case be exercised contrary to the purposes and principles of the United Nations." In other words, its promise of "human rights" does not apply to those who would criticize the UN or its policies. Nor does it apply to Christians who cling to God's "offensive" truths -- or refuse to follow UNESCO's Declaration on the Role of Religion.[11]

Fellow Americans, when the UN blue-helmets roll into town, you know what to do.

Buckaroo Banzai's picture

" 21st Century Fox indicated that it would sell CNN to head off potential antitrust concerns..."

Who would be stupid enough to buy that worthless piece of shit?

data_monkey's picture

The same people that bought Al Gore's network?

TeamDepends's picture

From the horses mouth:

"We are grateful to the Washington Post, the New York Times, Time magazine and other great publications whose directors have attended our meetings and respected the promises of discretion for almost forty years. It would have been impossible for us to develop our plan for the world if we had been subject to the bright lights of publicity during those years. But, the world is now more sophisticated and prepared to march towards a world-government. The supranational sovereignty of an intellectual elite and world bankers is surely preferable to the national auto-determination practiced in past centuries"--

David Rockefeller in an address to a Trilateral Commission meeting
in June of 1991

Note:  "Prepared to MARCH"!!!!!!!

Ghordius's picture

TeamDepends, that was 1991 and that was Rockefeller's gibberish

in 1991, the US reigned supreme. the ultimate hyperpower. the winner of the duel between the two superpowers. the leader of the Free World. the champion of humanity, property rights, rule of law, propriety, capitalism, etc. etc.

oligarchs like Rockefeller felt like world government - through institutions like the UN (and the Trilateral, the WB, the IMF, etc.), btw - was very, very near

what we have nowadays is a completely different situation. the world is going away from unipolarity, or even duopolarity, towards multipolarity, as many critics of Rockefeller's vision already warned then

though the echos of US oligarchic propaganda and counterpropaganda of the nineties are still here. hence this gibberish about US sovereignty being threathened by... UN Blue Helmets, out of all threats

do you even have the faintest idea how UN Blue Helmets are recruited? hint: they always belong to a sovereign nation that "lends" them for a specific mission... after a war

world government my hat. that train never really stopped at the station. there was the faintest chance only, and a couple of US administrations blew it by throwing all the (little) moral high ground that was necessary to combat world communism with utterly unnecessary and nearly unilateral wars, mostly to appease the legions of lobbyists from a couple of megacorps

megacorps belonging to oligarchs like Rupert Murdoch (who still envisions a world dominated by the AngloSphere), who's media empire loves, loves, loves making money out of the thirst for thruthiness - you know, the things that feel like truth. in the belly. like UN Blue Helmets soon kicking you to death for planting squash in your backyard

sheeeeesh - rant end

TeamDepends's picture

Are you done patting yourself on the back, Ghordi?  Guess what?  The UN is already here in the continental US!  If you look you can find many photos of brand spanking new UN vehicles being shuffled around the country.  They are meddling in the Detroit water issue.  But they will make their grand entrance on the southern border, where they will reclassify the invaders as "refugees" and assume that they have carte blanche to do whatever they feel is necessary to correct the problem.  The Barry regime will, of course, welcome them with open arms as saviors.  Despite your gibberish, the billionaires of the world (most of them anyway) want a One World Government/New World Order/Global Currency.  Will they get it?  Are the BRICS in on it?  Don't know and neither do you.

Are the blue-helmets our only threat?  Of course not, Ghordi!  The Russians, the Chinese, ISIS, and God knows what other vermin are already here.  But the UN forces will probably engage "right-wing patriots" first, in order to make Americans look like barbarous rebels:  Look at those crazy yanks, they don't want to join the global community, they are fighting AGAINST the United Nations!  Well, there is maybe one thing we can agree on, the war has begun!

fonzannoon's picture

Yellen said 12.6x past 12 months before ebita seems to be a fair valuation and she reiterates her buy holding. She also recommended everyone wear tan slacks with a black dress shirt today. Also she said that a BLT with a water (Fiji or Aquafina) is appropriate for lunch today.

Quinvarius's picture

Did she say anything about the war in Eurasia?  We have always been at war there according to Brzezinski.  I have not heard much in the news about is since the cross border shelling at Luhansk. 

Ghordius's picture

you mean the Eurasian Union? actually, that's only Russia and it's new satellites, and Ukraine does not belong to them

basically the Ukrainian military had several victories, the two generals that turned the campaign around - mostly by giving their soldiers a bit of hope and using a few crack troops intelligently - are now the Chief of Staff and the DefMin, and nearly all rebel strongholds have been "mopped up"

as often, media is quite clueless how to report things that don't feel like "news"

greatbeard's picture

>> represents the right,

The same one that represents the left.

midtowng's picture

Thye both represent the right.

InjectTheVenom's picture

nothing to see here , move along . . . . . ;>)

GetZeeGold's picture

 

 

Can I cancel my Time Warner subscription without the Comcast hassle?

Urban Redneck's picture

How many Americans who live in areas served by TWC have written to to the SEC/FCC to protest the proposed Comcast merger? (now that the public "window" is open)

Americans are docile self-absorbed sheeple, who just don't give a shit unless it costs them out of pocket. They collectively deserve to be buggered by the likes of Brian Roberts & Rupert Murdoch.

buzzsaw99's picture

It would be financed by Goldman Sachs and additional banks, the person said...

talk about a pig in a python. FOX already has $20B of debt. Thanks bernanke!

nathan1234's picture

Blankety Blank

No problem Rupert. Will just tell our Babe at the Fed to give us the money digitally. Maybe a few minutes now because she still doesnt have the experience our Ben has.

 

Semi-employed White Guy's picture

Just when you thought the media couldn't get any more consolidated or more Jewish here comes old Rupert to feast again!

Cathartes Aura's picture

.

Together, 21st Century Fox and Time Warner would become a colossus with an array of television networks and channels like Fox, Fox News, FX, TNT and TBS; the premium subscription channel HBO, movie studios like 20th Century Fox, Warner Bros. and other prominent outlets. It would also combine Fox’s growing sports business with the broadcast rights that Time Warner owns for professional and college basketball and Major League Baseball, among other sports.

The combined company would have total revenue of $65 billion.

 

control of the SOMA = control of the mass-minds.

priceless.

Boubou's picture

I bet O would be fine with that

Taterboy's picture

Will Rupert make that guy in the TWC tv ads shave before he barges into someone else's house?

thestarl's picture

Just wish that old cunt would die sooner rather than later

Cognitive Dissonance's picture

"....would give Murdoch control of both the left and the right propoganda with CNN and Fox."

Not to quibble but.......Murdock expressly said in his offer to Time Warner he would sell CNN if the offer was accepted. Not that it makes much difference.

NoDebt's picture

Maybe he could sell it to Al Jazeera.  They'll buy anything.  They bought Al Gore's lousy Current TV for billions, why not CNN and their 36 daily viewers?

Winston Churchill's picture

Of the two people ,I've  done business with, that exuded evil, and made my skin crawl,

Robert Maxwell was one, and Murdoch was the other.

I went home, and took long, hot, showers after meeting with them.

Soulless dead eyes doesn't begin to describe them.

Truly lizard people.

NoDebt's picture

Tyler Durden.

Nah, just kidding.  I do.  And I'd like to thank you all for coming to my little website every day.  Now buy something from one of my sponsors, please.

kurzdump's picture

From what I've heard it's Miley Cyrus.

Canucklehead's picture

He's willing to spend $80 Billion? Won't that kill the US dollar?

firstdivision's picture

Look at all those insider moves seconds before the announcement.  Nothing to see here, move along.

WTFUD's picture

Is that CUNT still ALIVE for FuckSake?

buzzsaw99's picture

the alien lizard overlords have exceptionally long lifespans. i think it is the impoverished fetus juice they drink with breakfast.

deflator's picture

kneejerk reaction would be to short the spike knowing this deal will never happen.

buzzsaw99's picture

using logic will get you killed in this market. shorting doubly so.

deflator's picture

agree 100% the quickest way to get the puzzled dog look from someone is to make a logical statement in reference to this market.

Billy Sol Estes's picture

Free Money!

The Recovery is here!

orangegeek's picture

good move Rupert

 

just made it a little more expensive for the lefties to consolidate the fragmented, money losing side of the spectrum

 

have fun with this number ABC/NBC/CBS

greatbeard's picture

>> more expensive for the lefties

Yeah, those corporate fascist pro war pro big oil pro big ag, pro big pharma lefties.  The left just ain't what it used to be.

casaananda's picture

I think it would be a good thing if Murdoch died. Period.

GetZeeGold's picture

 

 

All I can say is Mao went too damn early.....only the good die young.

 

According to the prophet Billy Joel anyway...

groundedkiwi's picture

So you haven't seen the family photo?

Boubou's picture

Looks like he should have offered $66.6 Billion.

Atomizer's picture

I'm sure Murdoch just wants to restore Time Warner back to the Adelphia cable days. It was a cash cow until the family landed in prison. That's what you call a forced ownership M&A strategy. I remember getting a line item charge for HDTV. Calling them was humorous. 

I'm not paying this line item, we don't have HDTV. 

Reply, yes you do. 

Me, no we don't 

Reply, yes you do 

Me, no we don't. We are all still on analog TV. Digital switch is two years away. 

Reply, yes you do. 

deflator's picture

 It costs ten bucks a month extra if you don't want a blurry picture.

Atomizer's picture

Adelphia was subsidizing infrastructure upgrades on technology that was not available via customer. Toggle that with new FCC fee increases. The story goes back some years. 

groundedkiwi's picture

Its all positioning prior to the signing if TPP plus TPPA etc