Comcast Makes $65 Billion Offer to Buy 21st Century Fox

Comcast Makes $65 Billion Offer to Buy 21st Century Fox

Comcast said it has offered $65bn (£48.6bn) in cash for Fox's film and television studios and worldwide businesses.

The cable giant's aggressive bid also may test the close working relationship between Disney's Bob Iger and Murdoch, which reportedly contributed significantly to Disney's successful play for Fox's stable of properties in the first place.

Comcast in a statement outlined an offer that was similar to Disney's, including a commitment to the same divestitures. As a result of this offer, the planned July 10 shareholder meeting may be delayed now to give Fox more time to weigh up their options, but that also gives Disney some time to counter Comcast's counter.

In a deal that more closely resembles the one that Judge Leon approved, Walt Disney dis wants to buy most of 21st Century Fox foxa for $52 billion. Fox shareholders were expected to officially consider the Disney merger agreement next month. It's widely thought that Comcast may now make a bid for Fox, and that CBS and Viacom may merge.

The showdown over Fox is happening as the growth of online streaming and competitors such as Netflix reshape the entertainment industry.

The Fox/Disney deal has been a very prolific merger, making countless headlines since it was announced late previous year.

The Fox stable includes The Simpsons and the X-Men movie franchise.

More news: Gushing North Korean broadcaster Ri Chun Hee hails Trump-Kim summit
More news: NY sues Trump for 'illegal conduct' at family foundation
More news: Poet Kate Clanchy: I hope MBE honours creativity in classroom

A deal between Comcast and Fox would only further anxieties over a concentration of power in the USA media markets as more cable and satellite TV providers are acquiring major networks and broadcasters.

An earlier bid by Comcast was rejected by the board of Fox because of fears that regulators would cry foul.

A United States judge today cleared the AT&T merger with Time Warner. Based on that, it would appear that the DoJ barely stood a chance in the trial, and it would have been better off settling, even if just to get a better outcome from the AT&T Time Warner merger.

The firm's promises include a $2.5bn fee for Fox if it decides against the takeover. The question is will Disney's board and management go to the mat on this transaction?

With the deal, Roberts said Comcast would stay on track "to build the entertainment company of the future".

Comcast said any antitrust concerns should be eased by Tuesday's court ruling on AT&T and that its offer "should be as or more likely to receive worldwide approvals, given our relatively small presence outside the USA".

"Once technically driven volatility wears off we expect the stock to move higher as closure will likely provide a new investor catalyst including about $1.5 billion in anticipated cost synergies", Williams said.

Related Articles