Time Warner rejected Murdoch's $ 80 billion

Media tycoon Murdoch for the acquisition of Time Warner's $ 80 billion was rejected. Because Murdoch has done so many bold deals for more than half a century, it is hard to stop it from expanding the media empire's ambitions.

80 billion acquisition plan ended

The 21st Century Fox Company and Time Warner in the United States have separately issued a statement a few days ago, and the plan of 21st Century Fox Company to offer 80 billion U.S. dollars to buy Time Warner was finally rejected.

Stimulated by the news, Time Warner Inc. stock price out of long-term trough rose 12.12 US dollars to close at 83.13 US dollars per share, up as much as 17%, 21st Century Fox fell 6.2% to 33 US dollars.

According to Reuters, the $ 80 billion offer is the second-largest transaction in the history of the media and entertainment industry, after AOL spent $ 164 billion on Time Warner acquisition in 2000.

But even so, Time Warner still thinks the price is too low. Time Warner Inc. issued a statement made it clear that the acceptance of its offer to buy or seek any merger with 21st Century Fox's discussion does not meet the best interests of Time Warner or its shareholders. The Time Warner Board of Directors believes that continuing to implement its strategic plan will create more value for companies and shareholders than any offer Foxconn can offer in the 21st Century.

Xiao Yongliang, executive director of the Beijing Institute of Cultural and Creative Industries, Beijing Normal University, bluntly stated that Time Warner's performance in recent years was not satisfactory and its business value repeatedly revealed its acquisition, but even its market value Should also be at least billions of dollars or more.

Another reason to refuse is the acquisition. In the cash and stock acquisition proposal, the share portion accounted for 60%. Reuters quoted sources as saying that the absence of a voting right warrants Time Warner's board of directors to be even more concerned because Murdoch and his children will have too much power in their hands.

Murdoch or raise the offer

As one of the six major studios in Hollywood, Time Warner is also bumpy. As early as 2000, Time Warner was funded by AOL for as much as 164 billion U.S. dollars. By 2002, however, Time Warner eventually broke up with AOL as its share of the Group's business continued to shrink. Earlier this year, Charter Communications Corp., a U.S. provider of cable television and broadband communications services, publicly offered its offer to Time Warner Cable for $ 61 billion, but eventually Time Warner Cable rejected it for "unrealistic" reasons.

The acquisition failed to let the outside world on the elderly Murdoch can continue to have some doubts about the glories of previous years. "As the parent company of 21st Century Fox, Murdoch media group in recent years due to scandal, itself is also in the internal adjustment phase, so even if the acquisition success, followed by the ability to operate is also a question to be considered. Xiao Yongliang said.

However, there are also views that Murdoch will not stop there. Reuters quoted sources said that to complete the transaction, Murdoch has a "tough determination." Investors expect Murdoch will eventually raise the offer, increase the cash portion to win the hearts of Time Warner.

A new round of Hollywood wave of mergers and acquisitions open

It is noteworthy that, although the acquisition eventually ended in failure, but it seems the industry insiders also indicates the wave of the new round of M & A set off. In the view of Xiao Yongliang, if the acquisition succeeds, the combination of 21st Century Fox and Time Warner will break the split of the world's top six Hollywood filmmakers and even lead to a dominance, which will inevitably result in the remaining 4 films Business restructuring, integration.

Peng McCain, director of music is positive, said Hollywood major film studios by the United States dragged down the overall economic development, and then lift the asset integration, mergers and acquisitions upsurge is indeed reasonable. However, on the whole, it is hard to find a dominant position in the short term due to the fact that the major film traders are basically evenly matched and have relatively stable business models and market shares.

Beijing Commercial Daily reporter Lu Yang Zhao Yi wave