$80 Billion: Fox Drops Time Warner Bid, While Sprint Hangs Up On T-Mobile

Billion dollar deals dropping like flies.
5:20 | 08/06/14

Coming up in the next {{countdown}} {{countdownlbl}}

Coming up next:



Skip to this video now

Now Playing:


Related Extras
Related Videos
Video Transcript
Transcript for $80 Billion: Fox Drops Time Warner Bid, While Sprint Hangs Up On T-Mobile
Okay. It's Wednesday August 6 the New York financial markets are open in today's big number eighty billion dollars. Rupert Murdoch was willing to pay for Time Warner until he suddenly dropped his takeover bid. Ending what would've been dubbed biggest media merger. In a decade. Hello everyone I'm Michelle Franzen in New York to discuss the deal that almost was as well as the dropped merger between sprint T-Mobile -- -- of Yahoo! finance good morning Lauren. So give us an idea what stopped Murdoch from spending all that fox cash to buy Tom Time Warner. All that fox cash was not an -- Michelle the price was not right so couple things that fox -- cited witches. One B Time Warner litigating and that the cold shoulder -- not really being willing to engage with them. But it -- you wish shareholder value and that this would and wouldn't a decline in foxes shares and the share price after this take over. That -- had been announced. Would make -- an attractive to shareholders saying. -- even -- fox it was offering 85 dollars a share that was the original bid offer which guide the company at about eighty billion dollars which is a lot of money. And there was an indication that they were willing to pay more looking at 1995. Dollars a share. That work from Time Warner was that they would be needing something around a hundred dollars a share at least -- order to accept its offer so. It looks like it and they dance they're just -- The right numbers and and prices and in place tenant may -- that. Luke warm in a statement Murdoch pointed at Time Warner's reluctance to negotiate as well as some misgivings about the deal from fox shareholders. It's not like him -- Murdoch to give up on something that it once when he what's your feeling on the street that Murdoch could be back after Time Warner. Well yeah this is something that is definitely a question it's out there but what analysts are saying this morning is saying hey maybe this is -- -- -- for Murdoch who -- Actually more in line with strategic. In -- -- aspect -- don't negatively impact shareholder value and they are. More in -- with with what the and bastards in the company actually want to because they have stepped away. From this -- and have indicated that there are focused on pursuing. Their strategic. -- that the company has including filling up their own cable offering is just one example -- so when it was quoted as close to the fox deal and in the Wall Street Journal said Ed that this is it that that they're not revisiting and India don't expect this to come back. So if that is true then and seem to indicate that this event. All right let's talk about another big deal that vaporize Sprint's 32 billion dollar takeover of T-Mobile how did this mega -- just unravel so quickly -- Yes and this has a little bit of a different issue at -- says -- and -- and it's big and it's it's and desire to acquire T-Mobile because of the right -- -- Hurdles that it would face so in order to get this deal through it -- had to clear through the Justice Department and the FCC. And the indications that the company was getting from Capitol Hill was that there hurdles would be high and that they would. Fight ascended and it wouldn't be easy for -- and even as sprint had boned -- on there Washington advisors and powerful lobbyists and at the -- -- had been making the rounds talking about how this would be a really good thing for customers and heard the market. At the end of the day it just an appearance -- it was too high a hurdle for it to be worth it for them to trying to fight. So this -- Verizon and AT&T as the two undisputed heavyweight wireless communications and -- bigger seems to be better. Heather are now concerns that -- -- brands or T-Mobile may not be able to survive. Wilson -- that they issued its spring his hat or at least it's been claiming it's 88 needs. At T-Mobile are our needs more in order to really mount itself says that as a strong third player in the market to compete with the bigger likes of AT&T and Verizon so. Will they go way I don't know you know -- doesn't seem like that's real threat her fear today but they will have to it. Do it the hard way sprint I mean in terms of gaining more customers they've had network problems because -- -- rebuilding there -- and so they've they've. Los money many years in a row and eight lost customers so that relief we'll have to add to fight the hard way in order to gain as customers back they're not -- get it. -- just. Nineteen novels customers but you know that saying that that the regulators are concerned about Wednesday if there was this -- that they're just wouldn't be and not. Options for consumers particularly at the low land of the cellphone market if there were just 33 big players instead of -- so. You know we'll see but in the meanwhile you know there is either there are other -- out there for -- mobile including European theater so you know it doesn't look like -- -- mobile thing will come to fruition that there has -- an indication that perhaps they could try again later. -- -- terror of Yahoo! finance thanks for joining us. It couldn't keep up with this and the latest headlines right here on abcnews.com. You've been watching the big number I'm Michelle Franzen in New York.

This transcript has been automatically generated and may not be 100% accurate.

{"duration":"5:20","description":"Billion dollar deals dropping like flies.","mediaType":"default","section":"ABCNews/Business","id":"24862440","title":"$80 Billion: Fox Drops Time Warner Bid, While Sprint Hangs Up On T-Mobile","url":"/Business/video/big-number-80-billion-fox-drops-time-warner-24862440"}