Murdoch forced to withdraw Time Warner takeover

Rupert Murdoch, with Time Warner unwilling and Murdoch’s stockholders unhappy, withdrew his $80 million 21^st Century Fox bid to acquire Time Warner.

Why the change of heart: The reaction to the offer made Fox’s stock price go down.

21^st Century Fox is the parent company of Fox Television, Fox News Channel, 20^th Century Fox film studios, and several cable and satellite television networks.

Media Matters urged Time Warner shareholders and its Board of Directors to oppose the sale, arguing that the combined company would have created the world's second-largest media conglomerate and reduced viable options for consumers.

Executives of News Corp., Murdoch's print-focused company (parent of the Wall Street Journal and Murdoch's United Kingdom-based newspapers), were convicted in the phone hacking scandal. News Corps issues millions in payouts for privacy violations.

Media Matters Vice President Angelo Carusone said that the merger would have given Rupert Murdoch control of 40% of the cable market and 30% of the movie market.

“Murdoch has demonstrated that he is far too irresponsible for that amount of power,” Carusone said.

Two other blockbuster mergers are awaiting government approval: Comcast’s $45 billion takeover of Time Warner Cable, which is not part of Time Warner, and AT&T’s $48.5 billion acquisition of DirecTV.

Comcast will be controlling the costs for 30% of cable users in America.

AT&T will have 27% of the pay TV business.

Cable charges have more than doubled in 20 years.

To read the entire article, click on http://mediamatters.org/blog/2014/08/05/rupert-murdoch-forced-to-withdraw-offer-to-acqu/200324