In rejecting an $85-per-share takeover bid by Murdoch last week, Time Warner said its own growth plan "is superior to any proposal that 21st Century Fox is in a position to offer," Bloomberg reports.
After evaluating Fox's books, Time Warner concluded that Murdoch would be uncomfortable financing a deal above $100 a share, sources told Bloomberg.
The purchase would require so much borrowing it could sacrifice Fox's credit rating, or use so much stock that existing investors' holdings would diminish in value, sources added.
Shares of Time Warner closed slightly lower today.
TheStreet Ratings team rates TIME WARNER INC as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate TIME WARNER INC (TWX) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."