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The media conglomerate 21st Century Fox has withdrawn its $80 billion offer to take over Time Warner, the company said on Tuesday.
Fox Chairman and Chief Executive Rupert Murdoch praised the offer as a unique opportunity to combine both companies. But since Time Warner refused to explore the option and “the reaction in our share price since our proposal was made undervalues our stock,” he decided to take the offer back, a company statement said.
The entertainment company Time Warner acknowledged withdrawal in a press release Tuesday saying, “Time Warner is well positioned for success with our iconic assets.” While Time Warner shares fell more then 11 per cent in extended trading, Fox’s shares rose by almost 8 per cent following the announcement.
Time Warner, whose properties include HBO and CNN, had rejected the acquisition offer three weeks ago.
The companies in the 21st Century Fox family include newspapers, lucrative cable networks and a film studio.
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