The stock price of Time Warner Inc (NYSE:TWX) declined almost 12% to $75.15 per share during the extended hours trading, around 4:27 in the afternoon in New York today.

Twenty-First Century Fox

The decline was primarily due to the announcement of Twenty-First Century Fox Inc (NASDAQ:FOX) that it was withdrawing its takeover bid for Time Warner Inc (NYSE:TWX).

Rupert Murdoch explained reason for withdrawal

In a statement, Rupert Murdoch chairman and CEO Twenty-First Century Fox Inc (NASDAQ:FOXA) said, “We viewed a combination with Time Warner as a unique opportunity to bring together two great companies, each with celebrated content and brands. Our proposal had significant strategic merit and compelling financial rationale and our approach had always been friendly.”

Time Warner Inc (NYSE:TWX) rejected the acquisition proposal of Twenty-First Century Fox Inc (NASDAQ:FOXA).

Murdoch emphasized that the reaction towards the share price of Twenty-First Century Fox Inc (NASDAQ:FOXA) undervalues the company’s stock since making the proposal to acquire Time Warner Inc (NYSE:TWX). According to him, the reaction to the company’s stock makes the deal “unattractive to Fox shareholders.”

“These factors, coupled with our commitment to be both disciplined in our approach to the combination and focused on delivering value for the Fox shareholders, has led us to withdraw our offer,” explained Murdoch.

In addition, Murdock emphasized that the future of Twenty-First Century Fox Inc (NASDAQ:FOXA) has never been better. According to him, the company is set to achieve even greater success through the strength of its franchises combined with the power of its emerging growth business and the leadership positions of its international enterprises.

Twenty-First Century Fox approves stock buyback

The board of directors of Twenty-First Century Fox Inc (NASDAQ:FOXA) approved a $6 billion shares repurchase program. The company is expected to complete the repurchase of additional $6 billion worth of its Class A common stock over the next twelve months.

“This significant return of capital underscores the Company’s ongoing commitment to disciplined capital allocation and returning value to shareholders in a meaningful way,” said Murdoch.

The shares of Twenty-First Century Fox Inc (NASDAQ:FOXA) climbed almost 7% to $33.20 per share after-hours, driven by its announcement.