Is Murdoch Really Walking Away From Time Warner?

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Aug. 5 (Bloomberg) -- Gamco Investors' Lawrence Haverty and Bloomberg's Paul Sweeney and Cory Johnson discuss Rupert Murdoch’s 21st Century Fox withdrawing its $75 billion takeover offer for Time Warner Inc. They speak with Pimm Fox on "Taking Stock." (Source: Bloomberg)

Let's start with your thoughts, larry.

What do you think of rupert murdoch withdrawing the proposal?

It is very simple.

You cannot do a hostile takeover in this industry.

It is a creative business, you cannot disturb the creative thought in a hostile manner.

If you're going to merge two entities, needs to be on a peaceful basis.

This is not the first time that rupert has had to walk away from a deal.

When that happened there was a lot of controversy but he bought a lot of stock and we made a lot of money.

I think that is what is going to happen here.

He has announced he will by about $6 billion worth of stock in it is very cheap compared to the business and i think the stock will go up a lot.

Really?

I have such respect for larry haverty, but i think you are very wrong.

Hostile mergers is rupert in the name of the game.

He has done this over and over.

The notion, as i think about this, the notion that he would walk away from his most important strategic to decision for his company the last five years, to just walk away and give up i think it is the timing of this right before the conference call is really important.

I think there is no certainty that this is truly rupert murdoch walking away from a time warner asset that he played his cards out to identify as valuable and something he wants.

The more i am leaning toward this is part of his game.

I think rupertrt ms.

Play this out of the gate, i do not think he will walk away.

I think he is going to sit back and give them six to 12 months to see how they do.

The stock would tell him whether he is an opportunity to come back.

He will take care of his show rollers by buying back $6 billion worth of stock.

With regard to rupert, there are other animals in the jungle, and we have thought there is going to be consolidation in this industry.

I think there's going to be consolidation.

Fox-warner was not my first bet, but you have sony, your viacom -- you have viacom, there are a lot of things that could happen here.

I think this will be walking away like the qvc paramount deal many years ago.

In the meantime we see the shares down about 20%. it will have to lever up

This text has been automatically generated. It may not be 100% accurate.

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