Updated at 3:33 p.m. EDT
NEW YORK (TheStreet) -- Time Warner (TWX), owner of the Warner Brothers movie studio and popular pay-TV networks TBS, TNT and HBO, was surging Wednesday after confirming it had rebuffed media mogul Rupert Murdoch's 21st Century Fox (FOXA) bid to buy the company in a deal worth $80 billion.
Fox, ever the acquirer, could be willing to pay higher than its original offer of around $85 a share to seal the deal, Bloomberg reported, citing people familiar with the matter.
Shares of New York-based Time Warner were gaining 18% to $83.61, its highest price since August, 2001, while Fox shares was tumbling 5.6% to $33.21.
Though the potential for an increased offer has yet to be confirmed, Fox did publicly state that its original offer had been refused. "21st Century Fox can confirm that we made a formal proposal to Time Warner last month to combine the two companies," New York-based 21st Century Fox said in a statement. "The Time Warner Board of Directors declined to pursue our proposal. We are not currently in any discussions with Time Warner."
The proposal, which the New York Times reported had been in the works since June, was made public just a week after executives from most of the country's largest media and technology companies gathered for Allen & Co.'s Sun Valley conference, an annual event that has historically cemented larger industry mergers and acquisitions.