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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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Wed, 07/16/2014 - 08:22 | 4962100 thatthingcanfly
thatthingcanfly's picture

Which of those networks represents the right, again?

Wed, 07/16/2014 - 08:27 | 4962115 TeamDepends
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.

Wed, 07/16/2014 - 08:48 | 4962165 Buckaroo Banzai
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?

Wed, 07/16/2014 - 10:46 | 4962583 data_monkey
data_monkey's picture

The same people that bought Al Gore's network?

Wed, 07/16/2014 - 09:04 | 4962188 TeamDepends
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"!!!!!!!

Wed, 07/16/2014 - 10:12 | 4962437 Ghordius
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

Wed, 07/16/2014 - 12:07 | 4962854 TeamDepends
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!

Wed, 07/16/2014 - 08:30 | 4962124 negative rates
negative rates's picture

What does it at this point matter, when the media is obsessed with wealth.

Wed, 07/16/2014 - 08:36 | 4962136 fonzannoon
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.

Wed, 07/16/2014 - 08:56 | 4962186 Quinvarius
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. 

Wed, 07/16/2014 - 10:19 | 4962485 Ghordius
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"

Wed, 07/16/2014 - 08:31 | 4962126 greatbeard
greatbeard's picture

>> represents the right,

The same one that represents the left.

Wed, 07/16/2014 - 11:55 | 4962804 midtowng
midtowng's picture

Thye both represent the right.

Wed, 07/16/2014 - 08:22 | 4962101 InjectTheVenom
InjectTheVenom's picture

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

Wed, 07/16/2014 - 08:21 | 4962102 GetZeeGold
GetZeeGold's picture



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

Wed, 07/16/2014 - 09:01 | 4962158 Urban Redneck
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.

Wed, 07/16/2014 - 08:29 | 4962103 buzzsaw99
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!

Wed, 07/16/2014 - 08:43 | 4962150 nathan1234
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.


Wed, 07/16/2014 - 08:23 | 4962104 Semi-employed W...
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!

Wed, 07/16/2014 - 09:39 | 4962329 Cathartes Aura
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.


Wed, 07/16/2014 - 11:52 | 4962789 Boubou
Boubou's picture

I bet O would be fine with that

Wed, 07/16/2014 - 10:28 | 4962522 Taterboy
Taterboy's picture

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

Wed, 07/16/2014 - 20:23 | 4965107 thestarl
thestarl's picture

Just wish that old cunt would die sooner rather than later

Wed, 07/16/2014 - 08:24 | 4962105 Cognitive Dissonance
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.

Wed, 07/16/2014 - 08:29 | 4962123 NoDebt
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?

Wed, 07/16/2014 - 08:36 | 4962131 GetZeeGold
GetZeeGold's picture





Wed, 07/16/2014 - 08:50 | 4962170 Winston Churchill
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.

Wed, 07/16/2014 - 08:56 | 4962184 Cognitive Dissonance
Cognitive Dissonance's picture

I see dead lizard people.

Wed, 07/16/2014 - 08:24 | 4962106 Capitalist
Capitalist's picture

Who owns ZH?

Wed, 07/16/2014 - 08:31 | 4962127 NoDebt
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.

Wed, 07/16/2014 - 08:46 | 4962161 Took Red Pill
Took Red Pill's picture

Brad Pitt

Wed, 07/16/2014 - 08:41 | 4962146 kurzdump
kurzdump's picture

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

Wed, 07/16/2014 - 08:27 | 4962114 Canucklehead
Canucklehead's picture

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

Wed, 07/16/2014 - 08:29 | 4962120 firstdivision
firstdivision's picture

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

Wed, 07/16/2014 - 08:30 | 4962125 WTFUD
WTFUD's picture

Is that CUNT still ALIVE for FuckSake?

Wed, 07/16/2014 - 08:35 | 4962128 buzzsaw99
buzzsaw99's picture

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

Wed, 07/16/2014 - 08:54 | 4962179 Seahorse
Seahorse's picture

murdoch, kissinger, soros...

Wed, 07/16/2014 - 09:32 | 4962299 Buckaroo Banzai
Buckaroo Banzai's picture

Don't forget Buffett.

Wed, 07/16/2014 - 08:34 | 4962132 deflator
deflator's picture

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

Wed, 07/16/2014 - 08:36 | 4962134 buzzsaw99
buzzsaw99's picture

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

Wed, 07/16/2014 - 08:39 | 4962135 deflator
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.

Wed, 07/16/2014 - 08:41 | 4962143 Billy Sol Estes
Billy Sol Estes's picture

Free Money!

The Recovery is here!

Wed, 07/16/2014 - 08:41 | 4962145 orangegeek
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

Wed, 07/16/2014 - 08:47 | 4962162 greatbeard
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.

Wed, 07/16/2014 - 08:45 | 4962154 casaananda
casaananda's picture

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

Wed, 07/16/2014 - 08:49 | 4962166 GetZeeGold
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...

Wed, 07/16/2014 - 08:57 | 4962189 groundedkiwi
groundedkiwi's picture

So you haven't seen the family photo?

Wed, 07/16/2014 - 11:47 | 4962768 Boubou
Boubou's picture

Looks like he should have offered $66.6 Billion.

Wed, 07/16/2014 - 08:49 | 4962167 Atomizer
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. 

Wed, 07/16/2014 - 08:54 | 4962175 deflator
deflator's picture

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

Wed, 07/16/2014 - 09:03 | 4962201 Atomizer
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. 

Wed, 07/16/2014 - 08:55 | 4962182 groundedkiwi
groundedkiwi's picture

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

Wed, 07/16/2014 - 09:06 | 4962206 Atomizer
Atomizer's picture


Wed, 07/16/2014 - 09:31 | 4962269 CaptainSpaulding
CaptainSpaulding's picture

Will this effect my Columbo DVDs

Wed, 07/16/2014 - 09:39 | 4962325 tony wilson
tony wilson's picture

head of the israeli mossad information gathering and blackmail firm rupert moses murdoch made an $80 billion takeover bid

fixed it


Wed, 07/16/2014 - 10:05 | 4962436 Burticus
Burticus's picture

Lamescream propaganda outlets Fox and Time Warner are on the FAR LEFT and EXTREME LEFT end of the political spectrum, toward totalitarian or 100% government.

Virtually nobody is on the right or 0% government (anarchy) end of the political spectrum any more.

Wed, 07/16/2014 - 10:42 | 4962567 Duffy Duck
Duffy Duck's picture

Bear in mind, fox, cnn, and msnbc all generally cover Israel and Russia the same way....

Obama the candidate was totally different from Bush... until he got into office...

We're in the fucking matrix. I think it's substantially worse than even the alarmists here on ZH think. I suspect our understanding of the outside world is substantially warped by TPTB.

I also think most opposition is controlled - Alex Jones, for example, stays far away from Israel or the influence of the pro-Israel lobby on politics *so religiously* (I'm not suggesting he need focus on it, or blame the Israel lobby or zionists for all the nation's ills - not at all, in fact) it suggests to me he is "owned" by them.

I may be wrong, however.

Wed, 07/16/2014 - 15:36 | 4963968 RMolineaux
RMolineaux's picture

You are right.  Same with Daily Kos - never mention Israeli crimes.   Alex Jones thinks deadbeat Bundy is a hero.  Nuff said.

Wed, 07/16/2014 - 11:00 | 4962631 I Write Code
I Write Code's picture

Looking at the numbers I can see why somebody would try this, TMX has a long history of selling way under its apparent value.

But nobody can imagine such a combined entity holding together or running much better.

The real answer is for TMX to explode itself into a dozen separate companies, the pieces might be worth 5x the current stock price.  And if Murdoch likes, he could buy one or two of the pieces.

Wed, 07/16/2014 - 11:46 | 4962763 syntaxterror
syntaxterror's picture

As long as that filthy creep doesn't try to buy ZH, he can buy whatever pieces of Barack's propoganda apparatus he wants.

Wed, 07/16/2014 - 15:31 | 4963950 RMolineaux
RMolineaux's picture

What ever happened to our anti-trust laws?   Characterizing CNN as a "left" medium is totally ridiculous.

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