Rupert
Murdoch's 21st Century Fox has withdrawn its bid to purchase US
entertainment giant Time Warner for an estimated $80bn (£47bn).
Time Warner rejected Fox's initial offer in July.
The company wrote in a statement that Time Warner had
"refused to engage with us to explore an offer which was highly
compelling".
It added that the reaction in the company's share price since the proposal was unveiled undervalued Fox.
Twenty-First Century Fox Inc Class B
Last Updated at 05 Aug 2014, 20:12 GMT
| price | change | % |
|---|---|---|
| 31.03 |
-
-0.84
|
-
-2.64
|
Fox's share price has declined by 11% since news of the takeover was revealed.
Meanwhile shares in Time Warner plunged more than 11% in
after-hours trading after the surprise news of the withdrawal was
announced.
Altered landscape
A merger between the two giants would have significantly
altered the media industry in the US and created one of the world's
largest media conglomerates.
Time Warner owns several lucrative cable channels - including
HBO, TNT, and TBS - whereas Fox is the owner of the dominant Fox News
channel in the US.
The acquisition offer was seen as a way for Fox to stay
competitive as other big players in the industry, including Comcast and
AT&T, also engage in mergers and take over offers.
As part of the announcement, Fox also said it would authorise a $6bn share repurchase programme.
That pleased investors, who sent shares in the firm up over 7% in trading after markets were closed.
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