Comcast Drops Bid for Fox, Leaving Disney's Acquisition Path Clear

Comcast Drops Bid for Fox, Leaving Disney's Acquisition Path Clear

"We don't think it would be a blow to Disney's long-term strategy if they ultimately lose Sky to Comcast", noted Cowen & Co. analyst Doug Creutz.

This comes after last week Comcast put forward a £26bn offer to buy Sky within hours of the Australian media mogul making a £24.5bn offer. Sky's independent committee has recommended that shareholders accept Comcast's offer.

According to Variety, Comcast will instead focus on buying the European satellite TV provider Sky.

It's worth noting that Fox initially preferred Disney over Comcast anyway in the battle for its assets.

Comcast's most recent offer for Sky values the broadcaster at £26 billion ($34 billion), up from its previous offer of £22 billion. That also holds the prospect of boosting the cost of the overall Fox deal to Disney, as it intends to buy up all of Sky if the Murdochs prevail.

Comcast is abandoning its attempt to purchase 21st Century Fox properties, the cable company announced today. It is unlikely either company would remain a minority shareholder in the event Comcast succeeds.

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FBN's Maria Bartiromo talks to Rep. Roger Williams, (R-Texas), about the state of deal-making in this economy as Comcast drops its bid for 21st Century Fox entertainment assets. A Comcast-Fox merger, like a Disney-Fox merger, would have been similarly vertical by combining a distributor with a content producer.

Comcast is likely to be the new owner of Sky, BBC Business Editor Simon Jack has learned.

AT&T bought Time Warner last month for $US81 billion ($110 billion) and has already launched its own streaming service, called Watch TV, with Time Warner channels such as TBS and TNT, among other networks, for $US15 a month.

Comcast had been fiercely duelling with Disney for Twenty-First Century Fox assets, but on Thursday said that it would not raise its $66 billion U.S. offer for the company.

If that sale were to happen, it would mean that Mr Murdoch's long association with Sky News would end. The agreement between the two companies states that Murdoch pays up to £13 a share, Disney for each £1 a share above that. The deal, at the time, was valued at $52.4 billion, all in stock.

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