Fox drops US$75b takeover bid for Time Warner

[NEW YORK] Rupert Murdoch's 21st Century Fox withdrew its unsolicited takeover offer of US$75 billion for Time Warner on Tuesday, giving up after the attempt to reshape the media industry sent Fox shares tumbling.

Mr Murdoch, Fox's billionaire chairman, said he was backing down after Time Warner's board refused to engage in talks and Fox's stock price declined 11 per cent since the offer became public. Fox instead authorised a US$6 billion repurchase of its Class A shares.

"Time Warner management and its board refused to engage with us to explore an offer which was highly compelling," Mr Murdoch, 83, said in a statement. "Additionally, the reaction in our share price since our proposal was made undervalues our stock and makes the transaction unattractive to Fox shareholders."