Thursday, August 7, 2014

Rupert Murdoch says he is "resolute" in abandoning Time Warner bid

Rupert Murdoch has reassured investors that he won't be making another offer for the rival media company Time Warner.

The media mogul made a rare appearance on a results teleconference with analysts this morning to say he was "resolute" about the decision.

Here's my report from this morning's edition of AM.

Some might be skeptical about Mr Murdoch's resolve given that he usually gets what he wants when it comes to big deals.

But in addition to being a very successful survivor, Mr Murdoch is also a realist and knew he had to be upfront with investors.

It's now clear that the US$85 billion bid for Time Warner was seen as too ambitious and some investors worried he was paying too much.

That had caused a fall on the 21st Century Fox share price so when the deal was pulled yesterday, Fox shares rocketed - helped in large part after Mr Murdoch and 21st Century Fox offered a US$6 billion share buyback.

While Mr Murdoch was clearly disappointed and frustrated with the attitude of the Time Warner board, he had a lot to smile about this morning after 21st Century Fox reported a sharp rise in fourth quarter revenue and returned to profitability.

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