Rupert Murdoch pulls the plug on Time Warner acquisition

The deal between Rupert Murdoch’s 21st Century Fox and Time Warner is off the table. 21st Century Fox announced yesterday that it was pulling the plug on the US$80 billion bid on Time Warner.Chairman and CEO of 21st Century Fox, Murdoch said that despite the proposal having “significant strategic merit and compelling financial rationale” the Time Warner management and its board “refused to engage” with his company and explore the offer. Murdoch added that additionally, the reaction in  21st Century Fox’s share price since the proposal was made undervalued its stock making the transaction unattractive to Fox shareholders.“These factors, coupled with its commitment to be both disciplined in our approach to the combination and focused on delivering value for the Fox shareholders, has led us to withdraw our offer,” he said in a statement. Meanwhile,  21st Century Fox will also be buying back its US$6 billion share from Time Warner and the deal is expected to be completed in the next 12 months.“ The strength of our leading franchises, combined with the power of our emerging growth businesses and the leadership positions of our international enterprises put us on a path for even greater success,” Murdoch added.The offer to Time Warner was made last month and according to global media,Time Warner has been resistant to the move.Time Warner also issued a statement on its site saying that Time Warner’s Board and management team are committed to enhancing long-term value and the company look forward to continuing to deliver substantial and sustainable returns for all stockholders.“Time Warner is well positioned for success with our iconic assets, including the world’s leading premium television brand, the world’s strongest ad-supported cable network group, and the world’s largest film and television studio.  We thank our stockholders for their continued support,”the statement read.The announcement comes a day before both companies are set to report their financial results.