Time Warner Inc (NYSE:TWX)’s former CEO, Dick Parsons, the current interim CEO of the recently sold Los Angeles Clippers NBA franchise, spoke with Bloomberg regarding the failed takeover bid of Time Warner Inc (NYSE:TWX) by Twenty-First Century Fox Inc (NASDAQ:FOXA) and chairman Rupert Murdoch.
“[...] I know Rupert well, and I would say categorically, Rupert’s a friend of mine, and I love his swashbuckling spirit, and so who could blame him for going after what I still think is the best jewel in the jewelry box, in the media space. But, what’s the value of Time Warner? Somewhere in my view in excess of $100 billion [...],” Parsons added.
Murdoch and Twenty-First Century Fox Inc (NASDAQ:FOXA)’s offer to purchase Time Warner Inc (NYSE:TWX) amounted to $75 million, at $85 per share. That offer, according to Murdoch in a statement released early last week, was rejected without engagement. Time Warner Inc (NYSE:TWX)’s CEO Jeff Bewkes believes the company’s continued growth will create more value than anything Fox could’ve reasonably offered, and Parsons agrees.
“[...] The current management is driving that company [Time Warner] in a way that shareholders are happy with, I mean the stock has tripled in the last six or seven years, and it looks like it’s still got a lot of upside and they’re driving it the right way. [...] There’re some shareholders who saw the stock going up to whatever it was, 88 bucks or something like that, ‘oh wouldn’t it be great to cash in’, but for the long term shareholders who remember four, five, six years ago when the stock was still down in the high 20’s and low 30’s; they’re happy guys,” Parsons added.
Any chance Twenty-First Century Fox Inc (NASDAQ:FOXA) could’ve sweetened the deal further for Time Warner Inc (NYSE:TWX) eroded following the news of the takeover bid going public, as the company’s share price began to tumble, falling 11% in the weeks that followed, which finally prompted them to remove the bid.