The possibility of a 21st Century Fox acquisition of Time Warner became distant on Tuesday.
21st Century Fox chairman and CEO Rupert Murdoch announced Tuesday that the company will withdraw its $80 billion offer to acquire Time Warner, ending a brief pursuit that if consummated would have combined two of the nation’s ‘Big Six’ media conglomerates.
Time Warner steadfastly opposed any potential acquisition, rejecting the Fox offer last month and refusing to enter into talks afterward. In a statement, Murdoch said the Time Warner board of directors “refused to engage with us to explore an offer which was highly compelling.”
Sports television rights played a major role in why Fox sought to acquire Time Warner. Turner Sports, part of Time Warner subsidiary Turner Broadcasting, owns rights to the NBA (through 2016), Major League Baseball (through 2021) and NCAA Tournament (through 2024). Adding those rights to the existing Fox Sports inventory would have created a major challenger to ESPN.
On the other hand, the potential merger would have likely spelled the end of Turner Sports — one of the best regarded brands in sports TV.
(Tue. news from 21st Century Fox via businesswire.com, The New York Times)
