Comcast Confirm They Are Ready To Re-Enter The Race For Fox

Comcast Confirm They Are Ready To Re-Enter The Race For Fox

Comcast Confirm They Are Ready To Re-Enter The Race For Fox

In December, Comcast's mostly stock bid of $60 billion for a large portion of 21st Century Fox assets was rejected by Fox management, headed by Rupert Murdoch, in favor of a $52 billion all-stock offer from The Walt Disney Company.

Joseph added that Comcast's offer is expected to be at a financial premium to Disney's, and as such "Fox is in a good position either ways".

Murdoch, who with his family controls 21st Century Fox, agreed to the tie-up in December that would give Disney the Fox studios in Hollywood along with Fox's global TV operations and U.S. cable entertainment and regional sports channels.

The Fox and Sky deals would transform Comcast into a global entertainment giant that could compete with Netflix and break out of the US market with its melting cable-subscriber base.

With the Fox deal, Disney would get more content for those services - through the studios behind the Avatar movies, "The Simpsons" and "Modern Family", along with National Geographic. Fox's Executive Chairman Lachlan Murdoch said earlier this month that the company was committed to its agreement with Disney.

Comcast says the proposed offer is in "advanced stages". "The structure and terms of any offer by Comcast, including with respect to both the spin-off of "New Fox" and the regulatory risk provisions and the related termination fee, would be at least as favorable to Fox shareholders as the Disney offer".

Early Wednesday morning trading saw Fox's stock up 1% to $38.55; Comcast was down 1.7% to $31.96, while Disney slipped 1.4% to $102.60.

Disney shares have fallen more than 3 percent since that deal, reducing the value of the offer to just over $50 billion. Fox and Disney also are interested in buying the business. "With Comcast already going after Sky assets in Europe, this would be a logical and aggressive move to go after these golden entertainment assets of Fox and would move Comcast to the forefront of the streaming game potentially over the coming years".

Looks like we may have a bidding war on our hands.

There's also the small matter of needing Fox shareholders' approval for any deal to go through.

Federal regulators opposed Comcast's last big deal, for Time Warner Cable, and Tim Wu, professor at the Columbia Law School and author of The Master Switch: The Rise and Fall of Information Empires, said in an interview on cable news that he believed that Comcast could face a harder antitrust review in Washington than Disney. The government is fighting that merger in court, and its outcome may determine the fate of Comcast's bid.

Updated May 23, 2018, with more details about another Comcast offer.

"It all depends on the AT&T and Time Warner deal", said Brian Wieser, analyst at Pivotal Research.

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