Rupert Murdoch has made an ambitious play to buy media giant Time Warner, the New York Times reported on Wednesday.
The Times said that 21st Century Fox, one of the two huge media conglomerates owned by Murdoch, offered to purchase Time Warner for $80 billion, but was turned down. Murdoch is used to such rejection, though, and may have even expected it. After all, others, such as the former owners of the Wall Street Journal, have also pushed away his initial takeover offers. Murdoch now owns the Journal. The Times said that he was “unlikely to walk away” from his attempts at a takeover.
Murdoch’s interest in Time Warner has been rumored for some weeks now. A merger of any Murdoch company with Time Warner would create a super-sized property, with major stakes in the news and entertainment fields.
Murdoch would almost certainly have to divest himself of some key properties in order to avoid monopoly concerns. The Times reported, for instance, that 21st Century Fox had offered to sell off CNN, since it already owns Fox News.
The effort to buy one of his biggest competitors could also signal that Murdoch feels that much of the pressure surrounding his business in the wake of the phone hacking scandal has abated. The reported bid has all the audacity and swagger of a classic Murdoch caper. It is not the kind of move made by a company that feels it shouldn’t do anything too flashy.
Moreover, Murdoch’s zeal for deals may not be sated by his desire for Time Warner. He’s also rumored to be interested in buying the Tribune newspapers, which are being spun off from their parent company. The two deals would mean that Murdoch had beefed up both sides of his empire — the 21st Century Fox entertainment wing, and the news and publishing giant News Corp.
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