Time Warner has rejected an unsolicited proposal from Twenty-First Century Fox to acquire all outstanding shares of the company. The offer was a combination of 1.531 of Twenty-First Century Fox Class A non-voting common shares and $32.42 in cash per share, but the Time Warner Board decided it was not in the best interest of Time Warner or its stockholders to accept the proposal, or any further discussions with Twenty-First Century Fox.
According to a Time Warner press release, “there is significant risk and uncertainty as to the valuation of Twenty-First Century Fox’s non-voting stock and Twenty-First Century Fox’s ability to govern and manage a combination of the size and scale of Twenty-First Century Fox and Time Warner.”
And, “there are considerable strategic, operational, and regulatory risks to executing a combination with Twenty-First Century Fox.”
Time Warner also said that under their strategic plan the company has delivered a total shareholder return of more than 150% since 2008, and that the value of the company’s portfolio of networks, film studio, and television production business is “only going to increase.”
