Rupert Murdoch May Relaunch Bid for Time Warner (TWX)

Overnight reports surfaced that Time Warner (NYSE: TWX) could be pressured by activist investors to spin-off HBO. Now we are hearing a more substantive rumor. According to a source, Rupert Murdoch's Twenty-First Century Fox (NASDAQ: FOXA) may try to make another run at the company.

In the summer of 2014, Twenty-First Century Fox launched a $80 billion, or $85 per share, offer for Time Warner. The deal was 60 percent in stock and 40 percent in cash. Time Warner rejected the offer saying it was not in the best interests of shareholders. Twenty-First Century Fox walked away shortly after. In a statement shortly after talks ended, Murdoch said, "Our proposal had significant strategic merit and compelling financial rationale and our approach had always been friendly. However, Time Warner management and its Board refused to engage with us to explore an offer which was highly compelling. Additionally, the reaction in our share price since our proposal was made undervalues our stock and makes the transaction unattractive to Fox shareholders."

Speculation that the golden-goose HBO may potentially be spun-off may spur Murdoch back into action.

Neither company has offered comment at the time of this report.

UPDATE: 21st Century Fox (NASDAQ: FOXA) said reports from a separate report news outlet, Benzinga, of a $105/share bid for Time Warner (NYSE: TWX) was 'categorically false.'

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