Why Rupert Murdoch Wants To Buy Time Warner

In a move that aims to counter consolidation among TV distributors like Comcast-Time Warner Cable and AT&T-DirecTV, Rupert Murdoch's Fox has made an unsolicited takeover offer for rival media giant Time Warner for about $76 billion in cash and stock.

The more must-have channels like HBO and Fox News Channel are assembled under one company, the stronger that company's bargaining position in demanding licensing fees from the TV distributors, no matter how big they get. Time Warner rejected the bid, but an analyst called it just a first attempt in a courtship that would make the combined company as large as Disney in market value.