Fox Cites Share Price Drop as Reason for Withdrawing Time Warner Bid

21st Century Fox (FOX) pulled its $80 billion dollar bid for Time Warner (TWX) on Tuesday after a big drop in the company's share price.
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21st Century Fox (FOX) pulled its $80 billion dollar bid for Time Warner (TWX) on Tuesday. For Chairman and CEO, Rupert Murdoch, said in a statement, '... the reaction in our share price since our proposal was made undervalues our stock and makes the transaction unattractive to Fox shareholders.' Fox's board has approved a $6 billion dollar stock buy-back over the next 12 months. Time Warner commented on what it called Fox's unsolicited proposal, saying, 'Time Warner is well positioned for success with our iconic assets, including the world's leading premium television brand, the world's strongest ad-supported cable network group, and the world's largest film and television studio.' A merger would have created an entertainment giant - not only combining an array of cable channels fro both sides but also combining Fox's 20TH Century Fox Film Studios and Time Warner's HBO. TheStreet's Julie Cerullo reports from New York.