ValueAct bought share for 1 billion USD from 21st Century Fox. The American hedge fund announced that it had bought shares for 1 billion USD from the controlled by Rupert Murdoch’s film and TV company. The agency noted that one week ago Fox withdrew its offer to 80 billion USD for the purchase of Time Warner, after it has been declined by the owner of CNN, HBO and Warner Bros. Murdoch said he intends to pursue the acquisition of another company as an alternative to the failed transaction.
“We support the plan (on Fox) for independence, which would increase the share price”, said the CEO of ValueAct Jeffrey Ubben, adding that he sees the price of Fox to a level of 50 USD per share in the next three years.
On Monday, Fox shares ended the day at a price of 34.77 USD per share. The participation in the media empire would be the fifth largest investment portfolio ValueAct, said Ubben.
“It is important for the ecosystem”, he said, adding that Fox should keep the possibility of a later date to review the deal. While Ubben adds that fully endorses and Fox plan to repurchase the shares for 6 billion USD.