When does a rejected acquisition bid nevertheless have consequences? When a big rejected bid means a target company is “in play.” So it is with the rejected $80 billion bid by 21st Century Fox to buy Time Warner.
Despite the rejection, other potential bidders now will have to evaluate whether their own bids to acquire Time Warner might now be on the agenda.
But one might also argue that lots of companies could likewise be candidates for acquisition, using the same deal logic that drove the 21st Century Fox bid for Time Warner.
If Time Warner is seen to be worth $80 billion, what other assets could be acquired for less?
Disney is big enough it is unlikely to be an acquisition candidate. But it could be a buyer.
Other content firms are more likely targets than buyers. Viacom’s market capitalization is around $36 billion, while CBS has a market cap of about $34 billion.
And though the list of potential bidders would include other big media concerns, it sometimes happens that friendly overtures, if rebuffed, develop into hostile takeovers. So 21st Century Fox might craft another offer.
Time Warner might not be the only major content firm that gets acquired.
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