It had the potential to create a media empire that would dwarf even Comcast and Disney, but Time Warner has rejected a takeover bid by 21st Century Fox, it was revealed yesterday. The bid, which totalled almost £47bn, would have covered not only film but also television assets that could have enabled the Murdoch-led corporation to dominate the US market.
Time Warner said that they did not feel it was in the interests off their shareholders to accept the bid and asserted that it has a strategic plan "superior to any proposal that 21st Century Fox is in a position to offer." Fox says that the two companies are not involved in ongoing talks, but there is speculation in the markets that a larger bid could yet be made. Because of the way US news is regulated, it is expected that Fox would have to sell CNN if a bid were successful.
Time Warner's share price rose markedly after it revealed its rejection of the bid.