Time Warner Inc. has rejected an offer from Rupert Murdoch to buy the media company for $80 billion.
Officials confirmed on Wednesday that it rebuffed the offer from Murdoch's 21st Century Fox because the deal would not be in its best interests, according to the New York Times. Time Warner added that it will stick to its own strategic plan, which it said would "create significantly more revenue."
21st Century Fox confirmed on Wednesday that it had made a formal offer to Time Warner last month.
"The Time Warner board of directors declined to pursue our proposal," the media company said. "We are not currently in any discussions with Time Warner."
Time Warner was also concerned about the value of 21st Century Fox shareholders when approached with the offer, as the company was being offered $34.42 in cash for each share, The Guardian reported.
"There is significant risk and uncertainty as to the evaluation of 21st Century Fox's non-voting stock and 21st Century Fox's ability to govern and manage a combination of the size and scale of 21st Century Fox and Time Warner," the company explained.
A deal between the two companies would result in a combination of a variety of television networks and channels, such as Fox, Fox News, FX, TBS, and TNT with movie studios like 20th Century Fox and Warner Bros., along with the premium subscription channel HBO, the New York Times reported. The agreement would also see Fox's sports business combined with Time Warner's broadcast rights for Major League Baseball and professional and college basketball. The total revenue for the combined company would be $65 billion.
People with knowledge of the issue said Time Warner received the offer in a letter from 21st Century Fox on June 24st, but sent a letter back on July 8th rejecting the deal, saying it would benefit more from remaining an independent company.
