This week Rupert Murdoch announced that he was trying to take over Time Warner Inc. (NYSE: TWX), he even said he would spend $80 billion to have acquire Time Warner.
This bid from Murdoch has closed the doors for other companies to place a reasonable bid. People from Time Warner Cable have a problem on their hands, they now have to figure out wether to accept this offer, ask for more money or wait utill another potential buyer becomes available. Many analyst believe this is was orchestrated by both Murdoch and the Fox board of directors with an opening bid so high that it cut out many companies competing.
Time Warner Inc. has gained popularity due to its assets from HBO and Warner Brothers. Time Warner rejected Twenty-First Century Fox Inc.’s (NASDAQ: FOX) opening offer of $85 per share in a cash and stock deal.
Many people including members of the congress and members of the SCC, who believe that this deal if accepted would be dangerous to the public. If Murdoch takes over Time Warner than it would make Murdoch, the most powerful person in the media.
He will have the power to put his programing in more than 70% of the households in America. Fox who have long stood a reputation for being a biased right wing news casting. If this deal goes through then Fox will be in almost every household which is making the Democratic Party very weary of the deal. Look for more updates about this deal in the immediate future.