Time Warner recently turned down Rupert Murdoch’s 21st Century Fox’s $80-billion cash-and-stock offer, calling the offer too low. Time Warner CEO Jeff Bewkes believes the company “would be stronger and more profitable on its own.” So what has Time Warner executives so nervous? Analysts expect Fox, via its tenacious CEO Rupert Murdoch, to sweeten its offer. Since Fox’s offer, shares of Time Warner rose 21%.
If history proves anything, Murdoch will get his way. Remember when he offered $5.6 billion for Dow Jones & Co.? It was considered sacrilege, selling the family-owned and well-respected Dow Jones to the tabloid king Murdoch. Turned out to be easy. Also consider this: about 70% of Time Warner’s shareholders also own Fox stock. If Fox takes over, it would control the output of more than a third of all scripted shows on the major broadcast networks including “Modern Family,” and “Big Bang Theory.”
