Time-Warner Rejects $80 Billion Bid from 21st Century Fox

CNBC reported this morning that Time Warner Inc. rejected a takeover bid by Rupert Murdoch's 2ist Century FOX, that was valued at $80 billion. The take over proposal would be $85 per share, in stocks and cash, at roughly a 60/40 ratio. the Time Warner stock price is currently above that $85 per share price.

FOX first approached Time Warner Inc. in June and in early July the TW sent a formal rejection of the offer. Rupert Murdoch is said to be "determined" to acquire Time Warner Inc. This may be the first round of a long, expensive process.

If the merger/takeover would take place, the Time Warner Inc. stocks would become non-voting shares for 21st Century FOX. The combined company would keep almost all current studios and brands, and would find a reported $1 billion in cost savings from sales and back-office functions.

In the report, Murdoch would put CNN on the auction block to the highest bidder. CBS and ABC would be the frontrunners of the property, if the network would ever become available.

This is just the latest mega media merger proposal, in recent months. Comcast is looking to take over Time Warner Cable (a separate company), and DIrectTV and Dish are looming to merge into one service.

Check out these videos, from CNBC, on their report and analysis of the continuing story.