US entertainment group Time Warner has rejected an initial takeover approach from Rupert Murdoch's 21st Century Fox estimated at $80 billion (£46.6 billion).
Twenty-first Century Fox confirmed in a statement today (July 16th) that its offer for Time Warner had been rejected.
The takeover approach was made last month, the BBC reports.
Together Fox and Time Warner would have owned a huge range of assets including CNN, Fox News, HBO and movie studios 20th Century Fox and Warner Bros, creating a combined company with total revenues of $65 billion.
Rupert Murdoch's group said it was not currently in talks with Time Warner about pursuing the deal further.
"21st Century Fox can confirm that we made a formal proposal to Time Warner last month to combine the two companies," the company said.
"The Time Warner board of directors declined to pursue our proposal. We are not currently in any discussions with Time Warner."
A statement released by the rival entertainment group has confirmed talks are over, stating that after lengthy discussions it had decided it was not in its best interests or those of its shareholders to accept the proposal or to pursue any further discussions with Fox.
21st Century Fox currently has more than $5 billion cash on its balance sheet, the Guardian reports. The company could also net potentially add $10 billion more if BSkyB, in which Fox owns a 39 per cent stake, successfully completes a buyout of Fox’s Italian and German pay-TV businesses to create Sky Europe.
Time Warner's share climbed 16.41 per cent to $82.66 today at 09:37 ET in New York, while 21st Century Fox's share lost 0.51 per cent to 35.01.
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