Word leaked out Wednesday that Time Warner had quietly rejected a $80 takeover offer from 21st Century Fox, and now the entire media world is trying to figure out exactly what that means for the future of both companies.
The Hollywood Reporter speculated late in the day that Murdoch’s rejected bid could herald a coming wave of mega-deals in the industry. One analyst the trade cited had already penned a report titled ““The Media M&A Merry Go ‘Round Begins.”
AMC Networks, Starz, and Crown Media were among the names tossed out as ripe for a deal.
The New York Times echoed that line of thinking, writing that the move “might again ignite a reshaping of the media industry, prompting a new spate of mega-mergers among the nation’s largest entertainment companies.”
The Grey Lady confirmed that Rupert Murdoch would have put CNN up for sale if the Time Warner deal had gone through, since it competes with his Fox News operation. That would have probably set up a bidding war for the cable news pioneer, with CBS or Disney’s ABC both potential suitors.
But Variety poured cold water on the M&A frenzy storyline with Digital Editor Todd Spangler writing “the factors that led Rupert Murdoch to covet Time Warner’s TV and film properties are uniquely mapped to the profiles of both companies — and may not spell a coming cascade of dealmaking in the sector.”
A Fox-Time Warner deal would be about greater global scale and extracting cost savings from complimentary businesses, Spangler wrote.
No one is expecting Murdoch to just thrown in the towel. As The Wrap pointed out late Wednesday, expect the Fox mogul to eventually raise their bid to just get the deal done.
Read More: The Hollywood Reporter, Variety, The New York Times, The Wrap
Brief Take: Hang on to your hats, kids, because this ride is just getting started. A Fox-Time Warner deal would marry some of the biggest names in TV today, including FX, HBO, and Warner Bros., while giving Time Warner’s lucrative sports broadcasting rights potential new homes on Fox’s sports networks.
Tags: