Comcast Offers Rival Bid To Stop Disney From Buying Fox

Comcast Offers Rival Bid To Stop Disney From Buying Fox

Comcast Offers Rival Bid To Stop Disney From Buying Fox

According to Reuters, Comcast is now talking to several investment banks to prepare a $60 billion cash bid for 21st Century Fox. On April 25, it announced a $31 billion acquisition offer for Sky, the British satellite service 39% owned by Fox.

Disney's biggest unit, Media Networks, which includes ESPN, ABC and Disney Channel, reported revenue of $6.14 billion, a 3 percent increase. The U.S. Department of Justice has opposed the AT&T-Time Warner deal over antitrust concerns, and a decision from U.S. District Court Judge Richard Leon is expected in June.

Separately, on another track, Comcast and Fox are each vying for full control of Sky and have lobbed in bids.

Fox is in the final stages of a bid to buy the 61 percent of the United Kingdom broadcaster it does not already own but at 10.75 pounds a share compared with Comcast's 12.50 pounds has so far made the lower offer.

Neither Disney nor Fox could be reached for comment.

Disney is attempting to close a $52 billion bid for film, TV and worldwide businesses from Fox.

As a result, the global telecommunications conglomerate believes it stands a better chance with an all-cash proposal, even if Fox Executive Chairman Rupert Murdoch prefers Disney shares.

Comcast hasn't yet decided whether to proceed with a hostile bid.

The original Fox-Sky combination has also been further complicated by Fox's agreement to sell many of its TV and film assets to Walt Disney Co, including its stake in Sky, for US$52 billion.

Comcast shares have been under pressure in recent months.

Be sure to continue following Heroic Hollywood for all the latest updates regarding the Disney/Fox deal as well as Comcast's cash bid.

"We still think Comcast will face a stiff fight for Fox and Sky and will likely end up with neither", Jonathan Chaplin, the managing partners New Street Research, said Tuesday". The cable company has been speaking to investment banks about obtaining bridge financing for an all-cash bid of those businesses, three people familiar with the matter said on Monday. It was ultimately rejected by Fox because of regulatory hurdles.

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