Spencer Platt/Getty Images(NEW YORK) — Following a bid to purchase media corporation Time Warner Inc., 21st Century Fox announced Tuesday that it will withdraw its proposal to acquire the company.
The Board also authorized a $6 billion share repurchase program, with the process of buying back an additional $6 billion of Class A Common Stock expected to be completed in the next year.
“This significant return of capital underscores the Company’s ongoing commitment to disciplined capital allocation and returning value to shareholders in a meaningful way,” Chairman and CEO Rupert Murdoch said in a statement.
“We viewed a combination with Time Warner as a unique opportunity to bring together two great companies, each with celebrated content and brands. Our proposal had significant strategic merit and compelling financial rationale and our approach had always been friendly. However, Time Warner management and its Board refused to engage with us to explore an offer which was highly compelling. Additionally, the reaction in our share price since our proposal was made undervalues our stock and makes the transaction unattractive to Fox shareholders. These factors, coupled with our 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.”
On 21st Century Fox’s decision, Murdoch adds that the group’s future “has never been brighter.”
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