Published: Wed, May 09, 2018
Finance | By Gustavo Carr

Comcast Readies to Beat Disney With New Bid for 21st Century Fox

Comcast Readies to Beat Disney With New Bid for 21st Century Fox

According to Reuters, Comcast is preparing to make a $60 billion all-cash bid for 21st Century Fox, after Disney made an offer of $52 billion for Fox back in December.

Comcast offered to acquire Fox's assets in an all-stock deal worth $64 billion, but likely for fear of anti-trust roadblocks, Fox went with Disney. However, a new report suggests that Comcast is not only reviving its bid for Fox, but is also prepared to spend some serious money to do so. In fact, the broadcasting conglomerate pushed a more generous deal than Disney.

As Reuters explains, Comcast exhausted to buy Fox a year ago but the deal never went through reportedly due in part to antitrust concerns.

June 12 marks the day that D.C. federal judge Richard Leon has set for a ruling in the government's anti-trust trial against the AT&T and Time Warner merger.

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However, that deal may soon be off the table, as Comcast has started a bidding war not only for the acquisition of the Britain based satellite group Sky, but reportedly began discussions to find a way to beat Disney to the punch in acquiring Fox.

Murdoch agreed to sell USA entertainment assets - though not the highly profitable Fox News Channel - to Disney, rejecting a higher offer for those assets from Comcast. In doing so, it topped an earlier offer for the entirety of Sky by Fox. Indeed, now Comcast is offering 22 billion pounds (about $30 billion) to acquire 61 percent ownership of Sky.

Disney shares fell 1 percent in morning trade in NY, while Comcast's dipped 3.5 percent to $31.25.

Last December, Disney announced they would acquire Fox's film, television and worldwide businesses in an attempt to combat the growing threat of streaming giants Netflix and Amazon. Comcast shares were down 1.5 percent to $31.90, while Disney shares were down 0.5 percent to $102.00. It is also unclear how receptive Murdoch would be to an all-cash deal. It is not a solicitation to make any exchange in commodities, securities or other financial instruments.

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